CBN Eases Bank Liquidity Rules and Opens OMO Auctions to Individuals and Companies

What happened

The Central Bank of Nigeria overhauled its money-market framework, effective immediately. Banks can now use the Standing Lending Facility on the same day they trade in the foreign-exchange market or participate in primary government-securities auctions, though not on a day they bid in an OMO auction. The CBN also resumed tenored repo operations running from 4 to 90 days and widened access to OMO auctions to all eligible investors, including individuals, companies and non-bank financial institutions. Banks will continue to submit bids and settle transactions for these investors.

Why it matters

The changes come three weeks after the MPC held its benchmark rate at 26.5% for a second straight meeting, with inflation at 15.91% in June. The CBN is keeping the main rate tight while making daily liquidity management more flexible, giving banks easier access to funding and a wider investor pool for OMO auctions. Recent OMO auctions cleared at 19.9%–21.9%, so direct access could give individuals and non-bank institutions those yields. The next test is the MPC meeting on September 21-22, 2026, and whether money-market borrowing costs shift even with the benchmark rate unchanged.