The Central Bank of Nigeria (CBN) on Wednesday lifted restrictions that had prevented financial institutions accessing its Standing Lending Facility (SLF) from participating in primary government securities auctions and the Nigerian Foreign Exchange Market (NFEM).
The apex bank announced the changes in a circular dated August 12, 2026, issued to all Deposit Money Banks (DMBs), authorised dealers and the general public by the Acting Director of its Financial Markets Department, Okey Umeano.
Under the revised framework, institutions that access the CBN’s Discount Window will no longer be barred from participating in the NFEM or primary auctions of government securities.
The changes effectively remove two restrictions previously attached to access to the central bank’s liquidity support facilities and take immediate effect.
The CBN said the decision followed a review of developments in the foreign exchange, money and fixed-income markets and was aimed at giving banks and other market participants greater flexibility in managing liquidity.
However, the apex bank retained the restriction on institutions participating in Open Market Operations (OMO) auctions on the same day they access the Discount Window.
CBN broadens OMO participation
Under the revised OMO framework, participation in both primary and secondary markets has been expanded to all eligible investors through Deposit Money Banks.
The eligible investors now include individuals, corporates and non-bank financial institutions.
The CBN said DMBs would continue to submit bids and settle transactions on behalf of their customers, effectively widening access to OMO securities through the banking system.
The apex bank, however, retained control over the scale and timing of OMO interventions. It said the volume, tenor and frequency of issuances would continue to be determined by prevailing liquidity conditions and monetary policy objectives.
The existing single-bid auction structure for OMO transactions will also remain in place.
CBN resumes tenored repo operations
The revised framework also provides for the resumption of tenored repurchase, or repo, operations, which had previously been suspended.
Repos enable the central bank to inject or absorb liquidity against eligible securities for a specified period, providing an additional tool for managing liquidity in the banking system.
The CBN said it could now conduct repo operations across approved tenors ranging from four to 90 days. The move is expected to support more effective liquidity management, improve money market functioning and strengthen the transmission of monetary policy.
The latest changes build on earlier reforms to the CBN’s monetary policy and financial market operating framework, particularly efforts to improve liquidity management and strengthen the role of market-based instruments in monetary policy implementation.
The CBN had issued guidelines governing access to its Discount Window in October 2022, while its OMO participation framework dates back to 2019.
The revised rules now draw a clearer distinction between market activities that should restrict access to central bank liquidity and those that should not.
Participation in the foreign exchange market and government securities auctions will no longer constitute grounds for restricting access to the Discount Window.
The retention of the same-day OMO restriction, however, preserves a safeguard against institutions simultaneously accessing the CBN’s liquidity window and participating in the central bank’s own liquidity-management operations.
The resumption of tenored repo operations also gives the CBN greater flexibility in managing liquidity, with the four-to-90-day tenor range providing an additional instrument beyond very short-term operations.
By expanding OMO participation to individuals, corporates and non-bank financial institutions, the revised framework also broadens the investor base beyond a narrower group of institutional participants.
The CBN directed all banks, authorised dealers and other market participants to ensure strict compliance with the new directives.
