CBN lifts FX, bond restrictions on banks accessing discount window

The Central Bank of Nigeria (CBN) has eased restrictions on the Discount Window for financial institutions participating in the Foreign Exchange Market (NFEM) and government securities auctions. The bank also allowed access to repurchase operations with maturities ranging from four to 90 days and expanded participation in Open Market Operations (OMO) to individuals, corporates, and non-bank financial institutions.

These changes were announced in a circular dated August 12, 2026, signed by Okey Umeano, Acting Director of the Financial Markets Department. The CBN made these modifications following a review of market developments and practices across foreign exchange, money, and fixed-income markets. Under the revised framework, participating in the NFEM will no longer restrict access to the CBN's Discount Window, which provides liquidity to eligible financial institutions.

The same-day restriction, however, remains for OMO auctions. The CBN retains the option to control the size and timing of OMO issuances, while OMO auctions will continue under a single-bid structure. These changes provide the CBN with greater flexibility in managing liquidity across the financial system and allow market participants wider opportunities to operate in the FX, money, and fixed-income markets.