The Central Bank of Nigeria (CBN) has relaxed restrictions governing access to its Discount Window, allowing financial institutions participating in the Nigerian Foreign Exchange Market (NFEM) and primary government securities auctions to access central bank liquidity facilities.
The changes are contained in a circular dated August 12, 2026, titled Review of Discount Window Restrictions and Open Market Operations Participation Framework, signed by Okey Umeano, Acting Director, Financial Markets Department. The directives took effect immediately.
Under the revised framework, participation in the NFEM will no longer prevent an institution from accessing the CBN’s Discount Window, which includes facilities such as the Standing Lending Facility.
The apex bank also removed the restriction previously linked to participation in primary auctions of government securities.
However, the restriction on Open Market Operations (OMO) remains. Financial institutions that access the Discount Window will not be permitted to participate in an OMO auction on the same day.
The CBN said the review followed an assessment of developments in the foreign exchange, money and fixed-income markets, as well as the frameworks governing its liquidity management operations.
CBN restores tenored repo operations
The apex bank also lifted the suspension of Tenored Repo Operations, allowing it to conduct repurchase transactions with maturities ranging from four to 90 days.
According to the CBN, the move is intended to support liquidity management, improve money market functioning and strengthen monetary policy implementation.
Repo transactions enable financial institutions to obtain liquidity against securities for specified periods, with the securities subsequently repurchased under agreed terms.
OMO participation widened
The CBN further expanded access to OMO transactions by allowing individuals, corporates and non-bank financial institutions to participate in both primary and secondary OMO markets through Deposit Money Banks.
Under the arrangement, banks will submit bids and settle transactions on behalf of their customers.
The central bank, however, retained control over the volume, tenor and frequency of OMO issuances, which will continue to be determined by prevailing liquidity conditions and monetary policy objectives.
The latest measures effectively give banks greater flexibility to participate simultaneously in the foreign exchange and government securities markets while retaining access to central bank liquidity facilities.
The reforms also expand the range of tools available to the CBN to manage liquidity and improve the functioning of Nigeria’s financial markets.
The latest changes come amid increased liquidity in the banking system. Nairametrics reported that the CBN injected a net N5.21 trillion into the banking system over the preceding week, including an N2.48 trillion OMO repayment on August 11.
