By Ukumbi Afrika 
Abuja, Nigeria
Nigeria’s central bank has eased restrictions on banks’ access to its discount window, reinstated longer-term repo operations and expanded participation in open market operations (OMO), in a move aimed at improving liquidity management and strengthening monetary policy transmission.
The Central Bank of Nigeria (CBN) said in a circular dated August 12 that it had immediately removed restrictions linking banks’ access to its Standing Lending Facility (SLF) with participation in the foreign exchange market and primary government debt auctions.
However, limits on same-day OMO operations remain in place.
Repo operations reinstated
The CBN also lifted its suspension of tenored repo operations, allowing it to conduct repurchase transactions with maturities ranging from four to 90 days.
The move provides the central bank with an additional tool to manage liquidity and support the functioning of Nigeria’s money market.
Wider access to OMO auctions
Participation in OMO auctions across both primary and secondary markets has also been expanded.
The CBN said all eligible investors, including individuals, corporates and non-bank financial institutions, can participate through deposit money banks.
The broader access could help deepen Nigeria’s money and fixed-income markets while giving investors greater access to CBN-issued instruments.
What it means for Nigeria's financial markets
The changes give commercial banks greater flexibility in managing short-term liquidity while operating in the foreign exchange and government debt markets.
For the wider financial system, the revival of repo operations and expanded OMO participation could improve liquidity distribution, strengthen monetary-policy transmission and provide the CBN with greater flexibility in responding to money-market conditions.
Source: Reuters
Reporting: Camillus Eboh
Writing: Elisha Bala-Gbogbo
Editing: William Maclean