Abayomi Susan
The Central Bank of Nigeria (CBN) has lifted restrictions that prevented financial institutions that accessed its Standing Lending Facility (SLF) from participating in primary government securities transactions and the foreign exchange (FX) market.
The apex bank announced the change in a circular issued on Wednesday, August 12, 2026, by the Acting Director of its Financial Markets Department, Okey Umeano, and addressed to Deposit Money Banks (DMBs), authorised dealers, and the public.
Under the revised framework, banks that access the CBN’s discount window will no longer lose access to the facility simply because they participate in the Nigerian Foreign Exchange Market (NFEM) or primary auctions of government securities.
The CBN said the decision followed a review of developments in the FX, money, and fixed-income markets, adding that the move would provide financial institutions with greater flexibility in managing liquidity.
However, the bank retained its restriction on institutions accessing the Discount Window and participating in Open Market Operations (OMO) auctions on the same day.
The revised OMO framework also expands participation in primary and secondary markets to include eligible investors such as individuals, corporate organisations, and non-bank financial institutions through Deposit Money Banks.
The CBN noted that banks would continue to submit bids and settle transactions on behalf of customers, while the volume, timing, and frequency of OMO operations would remain guided by liquidity conditions and monetary policy objectives.
The new framework also reintroduces tenored repurchase (repo) operations, allowing the CBN to inject or withdraw liquidity from the banking system using approved securities for periods ranging from four to 90 days.
According to the apex bank, the reforms are aimed at improving money market operations, strengthening liquidity management, and enhancing the effectiveness of monetary policy implementation.
The CBN directed all banks, authorised dealers, and market participants to comply with the updated guidelines.
