The Central Bank of Nigeria (CBN) has officially ended a seven-year prohibition that barred domestic investors from engaging in Open Market Operations (OMO). Effective immediately, the market is accessible to individual investors, corporate entities, and non-bank financial institutions.
This policy shift, outlined in a circular dated August 12, 2026, and signed by Acting Director Okey Umeano, signifies a major update to the national discount window and OMO framework. While the CBN now allows these groups to participate through Deposit Money Banks (DMBs), the bank maintains its authority to manage the size, timing, and frequency of these auctions based on current liquidity needs.
Alongside this change, the CBN has eliminated previous restrictions regarding access to the Discount Window, including limitations linked to trading in the Nigerian Foreign Exchange Market and government securities auctions. Furthermore, the bank has reactivated Tenored Repo Operations, permitting transactions with tenors ranging from four to 90 days to bolster money market efficiency.
These adjustments follow an internal review of the fixed-income and foreign exchange sectors. By broadening market participation, the regulator aims to improve liquidity management and enhance the implementation of its monetary policy objectives.
