CBN Eases Borrowing Rules for Banks, Expands Market Access

The Central Bank of Nigeria (CBN) has announced sweeping changes to its liquidity management framework, easing restrictions on banks and widening access to its money market operations.

In a circular released on August 12, 2026, the apex bank confirmed that financial institutions participating in foreign exchange transactions and government securities auctions will now be able to access its Discount Window, a facility that provides short-term funding support.

Previously, such activities limited banks’ eligibility.The CBN also lifted its suspension on tenored repo transactions, allowing repurchase agreements across tenors of 4 to 90 days.

This move gives banks more flexibility in managing liquidity beyond overnight borrowing.

Additionally, participation in Open Market Operations (OMO) has been broadened to include individuals, corporates, and non-bank financial institutions, though transactions must still be routed through deposit money banks.

The apex bank emphasized that it will continue to determine the volume, tenor, and frequency of OMO issuances in line with prevailing liquidity conditions.

While restrictions tied to FX and government securities auctions have been removed, the CBN maintained its rule preventing institutions from accessing the Discount Window and participating in OMO auctions on the same day.

According to the circular signed by Acting Director of Financial Markets, Okey Umeano, the revised framework takes immediate effect.

The changes are expected to strengthen liquidity management, improve money market functioning, and enhance monetary policy implementation.

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