CBN debunks report of restricting OMO sales to foreign investors

The CBN says it will continue to do all within its regulatory powers to educate Nigerians to desist from use of cryptocurrencies.

The Central Bank of Nigeria (CBN) on Wednesday denied the report that it plans to stop phase out sales of bills known as Open Market Operation (OMO), to foreign Investors.

Osita Nwanisobi, director of the corporate communications department, CBN, disclosed this to Businessday by phone on Wednesday.

“There’s nothing like that. It is not true. Absolutely, nothing like that. We are trying to get exactly where this is coming from. However, we have put on information across that the CBN is not trying to stop anything and that is the position, “he said.

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A report by Bloomberg said Nigeria’s central bank is preparing an end to an era of debt sales that handed foreign investors some of the best carry returns in Africa.

OMO is the sales or purchases of government securities by the Central Bank in order to expand or contract money in the banking system and influence interest rates.

In October 2019, the CBN adopted a policy prohibiting domestic nonbank institutional investors from reinvesting in OMO bills. The significant liquidity released from maturing OMO bills held by these investors has mostly found its way into the government debt market which has driven interest rates to record low levels.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.