Central Bank of Nigeria (CBN) has lifted its seven-year restriction on local investors’ participation in Open Market Operations (OMO), allowing individuals, corporates and non-bank financial institutions to invest in the market through deposit money banks.
The reversal was contained in a circular titled, “Review of Discount Window Restrictions and Open Market Operations Participation Framework,” dated August 12, 2026, and signed by the Acting Director, Financial Markets Department, Okey Umeano.
Under the revised framework, the apex bank said OMO participation in both the primary and secondary markets would be open to all eligible investors through deposit money banks. It specifically identified individuals, corporates and non-bank financial institutions as eligible investors, while directing deposit money banks to continue submitting bids and settling transactions on behalf of their customers.
The CBN had introduced the restriction on local investors’ access to OMO in 2019 as part of measures to reduce pressure on the naira, encourage banks to lend more to the real sector and drive down interest rates.
The latest decision effectively reopens the short-term government securities market to a broader range of domestic investors and is expected to deepen activity and provide additional investment opportunities outside traditional banking products.
The apex bank, however, retained control over OMO issuance, stating that the volume, tenor and frequency of OMO transactions would continue to be determined by prevailing liquidity conditions and monetary policy objectives. It also retained the existing single-bid auction structure for OMO transactions.
Beyond OMO, the CBN removed restrictions on access to its Discount Window arising from participation in the Nigerian Foreign Exchange Market (NFEM) and primary auctions of government securities.
The bank said the changes followed a review of developments and market practices in the foreign exchange, money and fixed-income markets, as well as its frameworks for access to the Standing Lending Facility (SLF), Tenored Repo Operations and OMO participation.
The CBN also lifted the suspension of Tenored Repo Operations, allowing it to conduct repo transactions across approved tenors ranging from four to 90 days.
According to the apex bank, the move is intended to support effective liquidity management, improve money market functioning and strengthen monetary policy implementation.
The revised framework takes immediate effect, with banks, authorised dealers and other market participants directed to ensure strict compliance.
