Region

Jurisdiction

Regulator

2026-08-12 | FMD/DIR/PUB/CIR/001/031

Added 2026-08-12

Review of Discount Window Restrictions and Open Market Operations Participation Framework

The Central Bank of Nigeria removes restrictions on accessing the Discount Window arising from participation in the Nigerian Foreign Exchange Market and primary auctions of Government securities, while maintaining the ban on same-day access for institutions using the facility to participate in Open Market Operations auctions. The suspension of Tenored Repo Operations is lifted, allowing the central bank to conduct repo operations across tenors ranging from 4 to 90 days. The Open Market Operations participation framework is revised to allow all eligible investors, including individuals, corporates, and non-bank financial institutions, to participate through Deposit Money Banks, which continue to submit bids and settle transactions on behalf of customers. These provisions take immediate effect.

Nigeria

Central Bank of Nigeria

CENTRAL BANK OF NIGERIA Corporate Head Office, Central Business District, P.M.B. 0187, Garki, Abuja – F.C.T Website: www.cbn.gov.ng Email: financialmarkets@cbn.gov.ng Tel: 09 462 36700, 0946236703 FMD/DIR/PUB/CIR/001/031 August 12, 2026 CIRCULAR TO ALL DEPOSIT MONEY BANKS, AUTHORISED DEALERS AND THE GENERAL PUBLIC REVIEW OF DISCOUNT WINDOW RESTRICTIONS AND OPEN MARKET OPERATIONS PARTICIPATION FRAMEWORK The Central Bank of Nigeria (CBN) has reviewed existing market practices and developments in the foreign exchange, money, and fixed-income markets. The Bank has also reviewed the framework governing access to the Standing Lending Facility (SLF), Tenored Repo Operations and participation in Open Market Operations (OMO). Accordingly, and further to Circular No. FMD/DIR/PUB/CIR/001/006 on Access to the Discount Window dated October 7, 2022, and Letter No. FMD/DIR/GEN/OGC/14/009 on Open Market Operations Auctions dated October 23, 2019, the following directives are hereby issued with immediate effect:

Discount Window Restrictions The CBN has adopted a differentiated approach to access restrictions on the Standing Lending Facility (SLF)/Discount Window as follows: a) Open Market Operations The existing restriction on participation in OMO auctions by institutions accessing the Discount Window on the same day shall remain in force. b) Foreign Exchange (FX) Transactions Restrictions on access to the Discount Window arising from participation in the Nigerian Foreign Exchange Market (NFEM) are hereby removed. c) Government Securities Transactions Restrictions on access to the Discount Window arising from participation in the primary auctions of Government securities are hereby removed.
Tenored Repurchase (Repo) Transactions The suspension of Tenored Repo Operations is hereby lifted. Accordingly, the CBN may conduct repo operations across approved tenors ranging from 4 to 90 days to support effective liquidity management, improve money market functioning and enhance monetary policy implementation.
Open Market Operations Participation Framework The CBN has revised the OMO participation framework as follows: a) Broader Participation OMO participation (primary and secondary markets) shall be open to all eligible investors through Deposit Money Banks (DMBs). Eligible investors include individuals, corporates and non-bank financial institutions. DMBs shall continue to submit bids and settle transactions on behalf of their customers. b) Liquidity-Based Issuance The volume, tenor and frequency of OMO issuances shall continue to be determined by the CBN in line with prevailing liquidity conditions and monetary policy objectives. c) Single-Bid Auction Structure OMO auctions shall continue to be conducted using the existing single-bid auction format.
Effective Date The provisions of this Circular take immediate effect. All banks, authorised dealers and market participants are required to ensure strict compliance. Signed: Okey Umeano Ag. Director, Financial Markets Department