CBN Lifts FX Restrictions for Financial Institutions

On August 12, 2026, the Central Bank of Nigeria (CBN) announced the removal of restrictions that prevented financial institutions accessing its Standing Lending Facility (SLF) from participating in Foreign Exchange (FX) and primary government securities transactions. This policy change, effective immediately, aims to provide banks and market participants greater flexibility in managing liquidity.

The announcement was made in a circular issued by Okey Umeano, acting Director of the Financial Markets Department. The revised framework allows institutions that accessed the CBN’s discount window to participate in the Nigerian Foreign Exchange Market (NFEM) and primary auctions of government securities without losing access to the liquidity support window.

However, the restriction on participation in Open Market Operations (OMO) auctions remains for institutions accessing the Discount Window on the same day. The CBN also reintroduced tenored repurchase (repo) operations, allowing liquidity management across tenors ranging from four to 90 days, thereby enhancing monetary policy implementation and market functioning.