CBN Reopens OMO Market to Individuals and Corporates

The Central Bank of Nigeria (CBN) reopened its Open Market Operations (OMO) securities to individuals, companies, and non-bank financial institutions on August 12, 2026. This policy reverses a 2019 restriction that limited access to OMO securities primarily to banks and institutional investors.

The CBN's decision aims to create new investment opportunities for domestic investors as they show a strong appetite for high-yielding short-term fixed-income instruments. OMO securities are used by the CBN to manage liquidity in the financial system, and their yields have become attractive compared to Treasury Bills.

At a recent Treasury Bills auction, investors submitted N4.4 trillion in bids for N700 billion, with yields for various maturities ranging from 16.30% to 17.59%. In contrast, OMO securities saw bids of N4.93 trillion for N600 billion, with yields of 20.39% and 20.01%.

Israel Adebomi of STL Capital & Advisory Limited stated that increased demand may not lead to lower OMO yields, while Isaac Osaro of First Securities Brokers Limited expects broader participation to exert downward pressure on yields.