The Central Bank of Nigeria (CBN) has dismantled a seven-year monetary barrier, reopening its high-yield Open Market Operations (OMO) to local individual investors, private corporations, and non-bank financial institutions.
​The policy shift was detailed in an official circular issued from Abuja on Wednesday, August 12, 2026, titled “Review of Discount Window Restrictions and Open Market Operations Participation Framework.” The document was signed by Okey Umeano, Acting Director of the Financial Markets Department at the CBN.
​This landmark decision overhauls the October 2019 policy framework that had limited OMO bill purchases strictly to Deposit Money Banks (DMBs) and Foreign Portfolio Investors (FPIs).
To have an expanded market access, domestic retail investors, corporate entities, and non-bank financial institutions can now participate in OMO auctions across both primary and secondary markets.
Commercial banks will act as intermediaries, submitting bids and settling transactions on behalf of their retail and corporate clients under the existing single-bid auction format.
Financial institutions participating in the Nigerian Foreign Exchange Market (NFEM) and primary government security auctions can now access the Standing Lending Facility (SLF) discount window without previous restrictions.
The apex bank lifted its suspension on Tenored Repo Operations, allowing 4-day to 90-day repurchase transactions to support short-term liquidity management. Institutions accessing the Discount Window remain restricted from participating in OMO auctions on the same day.
​According to the CBN, the decision followed a thorough review of recent trends across Nigeria’s money, foreign exchange, and fixed-income sectors. The original 2019 restrictions were intended to curb currency speculation, encourage real-sector bank lending, and direct domestic capital into long-term Treasury bills.
​”OMO participation (primary and secondary markets) shall be open to all eligible investors through Deposit Money Banks,” noted Okey Umeano in the circular, emphasizing that the scale, timing, and tenor of OMO issuances will remain tailored to prevailing liquidity conditions.
​Financial analysts expect the move to significantly boost fixed-income market liquidity, sharpen interest rate discovery, and give local savers direct access to competitive money market instruments. The directive took immediate effect across all authorized financial institutions.
