CBN removes discount window restrictions on Govt Securities Transactions, FX
Central Bank of Nigeria (CBN) Wednesday announced the removal of restrictions preventing financial institutions that accessed its Standing Lending Facility (SLF) from participating in primary government securities transactions and Foreign Exchange (FX).
The apex bank conveyed the development in a circular to all Deposit Money Banks (DMBs), authorised dealers, and the general public, which was dated August 12, 2026, and issued by its acting Director, Financial Markets Department, Okey Umeano. Under the revised framework, institutions that accessed CBN’s discount window will no longer lose access to the facility because of their participation in the Nigerian Foreign Exchange Market (NFEM) or primary auctions of government securities.
The decision effectively dismantles two of the restrictions previously associated with access to the central bank’s liquidity support window. It said the changes followed a review of developments in the FX, money and fixed-income markets. The changes, which took immediate effect, sought to provide banks and other market participants greater flexibility in managing liquidity, among others.
CBN, however, retained the restriction on participation in Open Market Operations (OMO) auctions by institutions that accessed the Discount Window on the same day. The move represents another adjustment to the central bank’s operating framework as it seeks to improve the functioning of the financial markets and strengthen the transmission of monetary policy. Under the revised OMO framework, participation in both primary and secondary markets has also been broadened to all eligible investors through Deposit Money Banks (DMBs).
The eligible investors include individuals, corporates, and non-bank financial institutions. CBN said DMBs would continue to submit bids and settle transactions on behalf of their customers, effectively widening the pool of investors able to participate in OMO transactions through the banking system.
