OMO Policy Revision Deepens Market Pressure as August Losses Hit N2.5tn – THISDAYLIVE

Kayode Tokede  

The Nigerian equities market depreciated by N2.5 trillion in August 2026, influenced by the revised  Open Market Operations (OMO) framework by the Central Bank of Nigeria (CBN). The revised policy allows individuals, corporates and non-bank financial institutions to participate in the market. 

Analysis of trading numbers showed that the market capitalisation of listed stocks on the Nigerian Exchange Limited (NGX) closed for trading at N155.8266 trillion, a decline of N2.5trillion or 1.6 per cent when compared with the N158.326 trillion it closed for trading July 31, 2026.  

However, the stock market rebounded between August 27 and 28, gaining N1.67 trillion as Nigeria returned to FTSE Russell’s Frontier Market.  

FTSE Russell confirmed on August 27, 2026, that Nigeria’s reclassification from Unclassified to Frontier Market status will proceed from the market open on Monday, 21 September 2026. The confirmation follows an additional assessment of Nigeria’s transition from a T+2 to T+1 settlement cycle, after market participants raised concerns that the change could effectively result in a de facto prefunding requirement for international institutional investors.

Furthermore, the NGX All-Share Index (ASI) stood at 241,298.47 basis points as of August 28, 2026, about 3,985.21 basis points or 1.6 per cent decline from 245,283.68 basis points it opened for trading in the month under review.  The NGX ASI in its Year till Date closed August 28, 2026 at  55.06 per cent. 

The Acting Director, Financial Markets Department of the CBN, Mr. Okey Umeano, had announced in a circular dated August 12, 2026, that participation in both the primary and secondary OMO markets would be open to all eligible investors through Deposit Money Banks (DMBs).

“OMO participation…