Huhuonline.com can disclose that the Central Bank of Nigeria (CBN) has reopened its Open Market Operations (OMO) market to domestic investors, ending a restriction that had kept individuals, corporates and non-bank financial institutions out of the market since 2019.
The decision, announced in a circular dated August 12, 2026, is part of a broader review of the framework governing monetary policy operations, the money market and fixed-income markets.
Under the new rules, all eligible domestic investors can participate in both the primary and secondary OMO markets through Deposit Money Banks (DMBs). Banks will continue to place bids and settle transactions on behalf of their customers.
The policy marks a reversal of the restrictions introduced seven years ago when the CBN sought to reduce pressure on the naira, encourage banks to channel more funds into the productive sectors of the economy and bring down interest rates.
The latest move is expected to broaden access to short-term investment instruments and deepen participation in Nigeria’s money market.
The CBN has, however, retained full control over OMO issuance. It said the volume, maturity and frequency of OMO auctions would continue to be determined by prevailing liquidity conditions and monetary policy objectives.
The apex bank also retained the existing single-bid auction structure for OMO transactions.
Discount Window Restrictions Removed
As part of the review, the CBN also removed restrictions that had limited financial institutions’ access to its Discount Window because of their participation in the Nigerian Foreign Exchange Market (NFEM) and primary auctions of government securities.
The bank said the restrictions arising from participation in NFEM and primary government securities auctions had been discontinued.
According to the CBN, the changes followed a review of developments across the foreign exchange, money and fixed-income markets, as well as its existing framework for access to the Standing Lending Facility (SLF), Tenored Repo Operations and OMO participation.
CBN Restores Tenored Repo Operations
The central bank also lifted the suspension of Tenored Repo Operations, allowing it to conduct repo transactions with approved maturities ranging from four to 90 days.
The measure is intended to strengthen liquidity management, improve the functioning of the money market and enhance the effectiveness of monetary policy implementation.
For investors, the reopening of OMO provides another avenue for deploying surplus funds into short-term securities. Individuals, companies and non-bank financial institutions will now have greater access to the market, although transactions must still be conducted through DMBs.
Overall, the reforms represent a significant adjustment to Nigeria’s monetary and fixed-income market framework, giving the CBN greater flexibility in managing system liquidity while widening domestic investor participation in OMO.