Open Market Operations

In line with this directive, individuals and local corporates are specifically excluded from investing.in Open Market Operations (OMO) auctions effective October 23, 2019.

An open market operation (OMO) is an activity by the CBN(Central Bank of Nigeria) to give (or take) liquidity in its currency to (or from) a bank or a group of banks.
CBN can either buy or sell government bonds in the open market (hence the name) or, in what is now mostly the preferred solution, enter into a repo or secured lending transaction
with a commercial bank: the central bank gives the money as a deposit for a defined period and synchronously takes an eligible asset as collateral.

A central bank uses OMO as the primary means of implementing monetary policy.

The aim of open market operations is—aside from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks—to
manipulate the short-term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply.