The Central Bank of Nigeria (CBN) has eased restrictions on access to its Standing Lending Facility (SLF), lifted the suspension of tenored repurchase (repo) operations and broadened participation in Open Market Operations (OMO).

The changes, contained in a circular dated August 12, 2026, are aimed at improving liquidity management, strengthening money market functioning and enhancing the effectiveness of monetary policy.

The circular was signed by Okey Umeano, Acting Director of the Financial Markets Department.

Under the revised framework, banks and other eligible institutions that participate in the Nigerian Foreign Exchange Market (NFEM) will no longer face restrictions on accessing the CBN’s Discount Window.

The apex bank also removed restrictions arising from participation in primary auctions of government securities. However, the existing restriction on participation in OMO auctions by institutions accessing the Discount Window on the same day remains in place.

The CBN has also lifted the suspension of tenored repo operations, allowing the bank to conduct repo transactions with approved tenors ranging from four to 90 days.

The move is expected to provide the banking system with an additional mechanism for managing liquidity and improve the functioning of the money market.

According to the CBN, the repo operations will also support more effective implementation of monetary policy.

In another major change, the apex bank has opened OMO participation in both the primary and secondary markets to a wider range of investors.

According to the circular, eligible investors now include individuals, corporates and non-bank financial institutions, although they will participate through deposit money banks.

The banks will continue to submit bids and settle transactions on behalf of their customers.

The CBN said the volume, tenor and frequency of OMO issuances would continue to be determined by prevailing liquidity conditions and monetary policy objectives.

OMO auctions will also continue to operate under the existing single-bid auction structure.

The latest measures represent a significant adjustment to the CBN’s operating framework for the money and fixed-income markets, potentially giving investors greater access to government-backed instruments while providing banks with more flexibility in managing liquidity.

The apex bank said the provisions of the circular took immediate effect, while directing all deposit money banks, authorised dealers and other market participants to ensure strict compliance. (Daily Trust