The Central Bank of Nigeria (CBN) has revised its rules governing access to its Discount Window, allowing banks involved in foreign exchange transactions and primary government securities auctions to use the facility without the restrictions previously attached to such activities.
The apex bank also lifted the suspension on tenored repurchase operations and broadened access to its Open Market Operations (OMO) to include eligible investors such as individuals, corporate entities and non-bank financial institutions.
The changes were announced in a circular titled, “Review of Discount Window Restrictions and Open Market Operations Participation Framework,” published on the CBN website on Wednesday.
Dated August 12, 2026, the circular was signed by the Acting Director of the Financial Markets Department, Okey Umeano, and addressed to deposit money banks, authorised dealers and the general public.
According to the CBN, the review followed an assessment of developments and existing practices in the foreign exchange, money and fixed-income markets, as well as the rules governing access to the Standing Lending Facility, tenored repo operations and OMO.
The Standing Lending Facility, which operates under the CBN’s Discount Window framework, provides eligible banks with short-term funding when they encounter temporary liquidity pressures.
Under the revised rules, participation in the Nigerian foreign exchange market will no longer restrict an eligible institution from accessing the Discount Window.
The CBN said, “Restrictions on access to the Discount Window arising from participation in the Nigerian Foreign Exchange Market are hereby removed.”
A similar change was made for banks participating in primary auctions of government securities.
“Restrictions on access to the Discount Window arising from participation in the primary auctions of Government securities are hereby removed,” the circular stated.
The changes mean that involvement in either of the two markets will no longer automatically disqualify eligible institutions from obtaining liquidity through the Discount Window.
However, the CBN maintained its restriction on institutions participating in OMO auctions on the same day they access the Discount Window.
“The existing restriction on participation in OMO auctions by institutions accessing the Discount Window on the same day shall remain in force,” it said.
READ ALSO: CBN Pushes Financial Inclusion Agenda At Bauchi Stakeholders’ Forum
The apex bank also announced the return of tenored repo operations as part of efforts to strengthen its liquidity management tools.
“The suspension of Tenored Repo Operations is hereby lifted,” the CBN said.
It added that it “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.”
Under a repo transaction, securities are temporarily exchanged for cash, with the parties agreeing to reverse the transaction at a specified date. The instrument enables banks and other financial institutions to manage liquidity over periods extending beyond overnight facilities.
The revised framework further expands access to the OMO market, with eligible investors now able to participate in both primary and secondary OMO markets through deposit money banks.
“OMO participation (primary and secondary markets) shall be open to all eligible investors through Deposit Money Banks,” the circular stated.
The CBN identified individuals, corporates and non-bank financial institutions as eligible investors, while deposit money banks will continue to submit bids and handle settlement on behalf of their customers.
Despite the wider participation, the apex bank retained authority over the volume, maturity and frequency of OMO securities offered to the market.
According to the circular, “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.”
The existing single-bid structure for OMO auctions will also remain in place.
OMO remains one of the CBN’s major tools for managing liquidity in the financial system. Through the sale of securities, the apex bank can absorb excess funds from the market and influence broader monetary conditions.
The latest measures therefore provide additional avenues for liquidity management by combining broader OMO participation, the restoration of tenored repo operations and the removal of some restrictions on access to the Discount Window.
The revised framework, however, maintains a distinction between the different market activities. While participation in foreign exchange transactions and primary government securities auctions will no longer prevent eligible banks from accessing the Discount Window, institutions using the facility cannot participate in OMO auctions on the same day.
The CBN directed banks, authorised dealers and other market participants to comply with the revised framework with immediate effect.
“The provisions of this Circular take immediate effect,” it said, adding that “all banks, authorised dealers and market participants