Balancing market growth, bank profits as CBN changes money supply rules

By Chinwendu Obienyi
The Central Bank of Nigeria (CBN) recently reopened its Open Market Operations (OMO) market to individuals, companies and financial institutions that are not banks.
OMO is a way the CBN controls the amount of money in circulation by buying or selling government securities, such as Treasury Bills.
The move means more people and businesses can now take part in this market, marking a major change in how the CBN manages money and how investors access Nigeria’s fixed-income market.
The move reverses a restriction introduced in 2019, when access to OMO bills, among the naira market’s most liquid and attractive low-risk instruments, was largely limited to banks a...