The Central Bank of Nigeria (CBN) revised its Discount Window and Open Market Operations (OMO) framework to expand market access and strengthen liquidity management and monetary policy transmission. Deposit Money Banks that use the Standing Lending Facility remain barred from OMO auctions on the same day, but related restrictions on participation in the Nigerian Foreign Exchange Market and primary government securities auctions have been removed. The CBN also lifted the suspension on Tenored Repurchase Operations, allowing transactions across approved tenors of four to 90 days. OMO participation in primary and secondary markets is now open to all eligible investors, including individuals, companies and non-bank financial institutions, through Deposit Money Banks. The CBN will continue to set OMO volumes, tenors and frequency according to liquidity conditions and monetary policy objectives, while retaining the single-bid auction structure. The revised framework took effect on Aug. 12, 2026, with banks, authorized dealers and other market participants required to comply immediately.
2026-09-09Central Bank of Nigeria
Central Bank of Nigeria eases Discount Window restrictions and broadens Open Market Operations access
The Central Bank of Nigeria eased Discount Window restrictions and opened primary and secondary OMO markets to all eligible investors through Deposit Money Banks. Banks using the Standing Lending Facility remain excluded from same-day OMO auctions, while restrictions involving the foreign exchange market and primary government securities auctions have been removed. Tenored Repo Operations have also resumed for approved tenors of four to 90 days.