The Nigerian fixed-income market, which includes government bonds, treasury bills, and Sukuk, plays a critical role in financing both public and private sector activities. It provides an essential investment vehicle for institutional investors, pension funds, and other market participants. However, the market has faced significant challenges such as lack of transparency, inefficient settlement processes, settlement lateness, and weak regulatory oversight, which have eroded investor confidence and hindered its growth.
In response to these issues, the Central Bank of Nigeria (CBN) has announced an ambitious overhaul of the market. The reform aims to streamline operations, improve regulatory oversight, and create a more transparent and efficient market environment. By taking full control of the market, the CBN intends to address these challenges and enhance the market’s functionality.