CBN Reopens OMO Market, Attracts Investor Interest
The Central Bank of Nigeria (CBN) announced the reopening of Open Market Operations (OMO) securities to individuals and corporate investors, effective August 12, 2026. This decision allows participation in both primary and secondary OMO markets through Deposit Money Banks, reversing a restriction from 2019.
The CBN's circular, titled "Review of Discount Window Restrictions and Open Market Operations Participation Framework," states that commercial banks will continue to manage bids and transactions for customers. The CBN retains control over the volume, tenor, and frequency of OMO issuances based on liquidity conditions and monetary policy objectives.
The existing single-bid auction structure remains unchanged. The reopening comes amid strong demand for short-term fixed-income securities, raising concerns about whether attractive OMO yields will divert funds from equities on the Nigerian Exchange.
Recent auctions showed significant investor interest, with ₦4.4 trillion in bids for ₦700 billion in Treasury Bills and ₦4.93 trillion in subscriptions for ₦600 billion in OMO securities.
Plus234Feed summary based on reporting from News Online Nigeria. Read the original report below.
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