By By Elizabeth Ugbo
The Central Bank of Nigeria (CBN) has lifted its seven-year restriction on local investors’ access to Open Market Operations (OMO). The apex bank announced the decision on Wednesday, August 12, 2026, in a circular signed by Okey Umeano, Acting Director, Financial Markets Department. The move allows individuals, companies and non-bank financial institutions to participate through Deposit Money Banks (DMBs). The CBN said the decision aims to deepen the money market and strengthen liquidity management.
CBN Opens OMO Market to Local Investors
The CBN introduced the restriction in 2019 to ease pressure on the naira. It also sought to channel more credit toward the real sector.
Additionally, the policy aimed to reduce interest rates and support economic growth.
However, the apex bank has now reversed the restriction. The decision follows a review of developments across several financial markets.
The review covered the foreign exchange, money and fixed-income markets. It also examined access to the Standing Lending Facility (SLF).
The CBN further reviewed its framework for Tenored Repo Operations and OMO participation.
Individuals and Companies Can Now Invest in OMO
Under the revised framework, eligible investors can now participate in OMO transactions.
The CBN said OMO participation will cover both primary and secondary markets.
It added that investors must access the market through Deposit Money Banks.
Eligible investors include individuals, corporates and non-bank financial institutions.
DMBs will continue to submit bids and settle transactions for their customers.
Consequently, local investors will gain another avenue for investing in short-term securities.
The policy could also increase activity and liquidity across Nigeria’s money market.
CBN Lifts Tenored Repo Suspension
The apex bank also lifted its suspension of Tenored Repo Operations.
As a result, the CBN can now conduct repo transactions across approved tenors.
These tenors range from four days to 90 days.
The CBN said the move will strengthen liquidity management.
It will also improve money market operations and support monetary policy implementation.
Furthermore, the decision gives the apex bank more flexibility when managing financial system liquidity.
CBN Retains Control Over OMO Issuance
Despite reopening the OMO market, the CBN retained control over OMO issuance.
The apex bank will determine the volume, tenor and frequency of each issuance.
It said those decisions will reflect prevailing liquidity conditions.
They will also align with the bank’s monetary policy objectives.
Meanwhile, the CBN retained the existing single-bid auction structure for OMO transactions.
Discount Window Restrictions Removed
The revised framework also removes some restrictions on access to the CBN Discount Window.
Previously, certain market activities could affect an institution’s access to the facility.
However, the new framework removes restrictions linked to participation in the Nigerian Foreign Exchange Market (NFEM).
It also removes restrictions linked to primary auctions of government securities.
The CBN said restrictions arising from NFEM participation no longer apply.
Similarly, participation in primary government securities auctions will no longer trigger those restrictions.
What the New CBN Policy Means
The OMO market reopening could broaden investment opportunities for domestic investors.
It may also encourage greater participation in Nigeria’s fixed-income market.
In addition, the policy could deepen liquidity and improve market efficiency.
The renewed repo operations could further help the CBN manage short-term liquidity pressures.
Overall, the measures represent a significant shift from the restrictions introduced in 2019.
They also highlight the CBN’s latest effort to improve monetary policy transmission and money market functioning.
