In a strategic move to fortify Nigeria’s non-interest banking sector, the Central Bank of Nigeria (CBN) has introduced three innovative financial instruments: the Nigeria Non-Interest Master Repurchase Agreement (NNMRA), the CBN Non-Interest Asset-Backed Securities (CNI-ABS), and the CBN Non-Interest Note (CNIN).
These instruments are designed to enhance liquidity management and bring greater standardization to non-interest financial transactions across the country.
According to the apex bank, the NNMRA will serve as a framework for liquidity arrangements compliant with non-interest principles, while the CNI-ABS and CNIN will provide Shari’ah-compliant alternatives to conventional securities and notes.
Participants in the non-interest financial market have been directed to integrate these instruments into their operations in full compliance with regulatory provisions. The CBN has also placed restrictions on access to its discount window on auction days to ensure market discipline and promote the use of the new instruments.
This move underscores the CBN’s commitment to expanding financial inclusion, promoting ethical finance, and offering viable alternatives for institutions and investors who operate within non-interest frameworks.