WATCH THE VIDEO HERE The Central Bank of Nigeria (CBN) has announced the rollout of three new instruments targeted at deepening Nigeria’s non-interest financial market and improving liquidity management for Islamic finance institutions. This move, disclosed in a circular dated May 23, 2025, is part of the apex bank’s broader strategy to strengthen the adoption and operational efficiency of non-interest banking instruments across the country’s financial system. The circular was signed by Okey Umeano, Acting Director of the Financial Markets Department, and obtained by Naijaonpoint from the CBN website on Tuesday. According to the CBN, the new instruments include the Nigerian Non-Interest Financial Institutions’ Master Repurchase Agreement (NNMRA), the CBN Non-Interest Asset-Backed Securities (CNI-ABS), and the CBN Non-Interest Note (CNIN). These tools are expected to standardize market practices, deepen participation, and align Nigeria’s Islamic finance offerings with global best practices. All authorized participants including full-fledged non-interest banks and conventional banks with Islamic banking windows, have been directed to integrate the new instruments into their operations. The CBN emphasized that these institutions must ensure full compliance with existing guidelines, circulars, and relevant regulatory frameworks. Notably, participants will not be permitted to access the apex bank’s discount window on CNI-ABS and CNIN auction days, reinforcing the separation of Islamic and conventional liquidity operations. The circular also urged stakeholders to consult the Revised Guidelines for the Operation of Non-Interest Financial Institutions’ Instruments (2022) for more detailed operational procedures.
New CBN instruments target liquidity in Islamic finance
