• Promotion of rapid growth and efficiency in the money market.
• Acting as an intermediary between the CBN and licensed banks in Open Market Operations (OMO) transactions and other eligible transactions.
• Facilitating the issuance and sale of short term Government securities.
• Providing discount/re-discount facilities for Treasury Bills, Government Securities and other eligible financial instruments.
• Accepting short-term investments on an intermediary basis from banks and wholesale investors.
• Providing short term financial accommodation to banks.

The CBN injects or withdraws funds from the money market through the Discount Houses, whose operations will enable them serve as a mirror with which the CBN gauges the liquidity position in the market.

Discount Houses help banks to adjust their books on a daily basis, resulting in the stimulation of the money market and paving the way for healthy growth, efficiency and professionalism.

In 1999, the functions of a Discount House were expanded to include:

• Providing portfolio and funds management services
• Providing financial Business Solutions
• Other functions that may be prescribed by the CBN from time to time

1. Kakawa Discount House Limited
2. First Securities Discount House Limited
3. Express Discount Limited
4. Consolidated Discounts Limited
5. Associated Discount House Limited

• According to CBN regulations, Discount Houses are mandated to keep at least 60% of all their assets in Government Securities while the balance of 40% could be invested in commercial bills. This means Discount Houses only invest in secured assets as the commercial bills have to be from reputable and highly rated companies with very good track records of repaying.
• Due to the high level of security prevalent in Discount Houses, the CBN acts as a "lender of last resort" to Discount Houses through the use of a repurchaseable facility which is not available to other financial institutions.
• According to CBN regulations, Discount Houses do not give out loans and over-draft facilities. They only invest in Government securities and commercial bills of highly rated companies. This safeguards the investors funds since the funds are invested in risk free or highly secure companies.
• Discount Houses constantly interact and dialogue with the CBN through various fora where the views of the Discount market are formally presented. This makes problem resolution very swift and provides an opportunity for the Discount Houses to continuously contribute to the development of the market.
• Due to the high level of security that exists in Discount Houses, placements by Banks with Discount Houses are treated as liquid assets of the Banks by the CBN.
• Discount Houses act as the ultimate measure of liquidity in the banking system and therefore the window of regulation of the level of liquidity in the system.

• Deepening of the secondary market for trading in treasury bills and commercial bills. Since the advent of Discount Houses in Nigeria, banks holding of Treasury Bills has risen from 6.00% in December 1992 to about 60% in 2004. This is in spite of the current low yield on treasury bills.
• It must be noted that the main reason for the increase in banks' holdings of Treasury Bills was the introduction into the money market of Treasury Bills related products by Discount Houses which relieved banks of the rediscounting risk and enabled them to invest their short term funds callable without notice. Accordingly, rather than leave overnight and short-term funds idle in their CBN accounts, banks invest these balances with the Discount Houses.
• Providing banks with avenues that enable them to adjust their liquidity as conveniently as possible through intermediated funds between the CBN and the banks.
• Acting as the primary movers in actively promoting the secondary market in Government Securities, which usually constitute the bulk of their investment portfolio.

Securities trading which includes buying and selling of:

• Treasury Bills
• Treasury Bonds
• Government Bonds
• Commercial Bills

Accepting short-term investments from banks and providing short-term accommodation to banks

Short-term financial intermediation through the acceptance of funds and simultaneous investment of the funds in:

• Commercial Papers
• Bankers Acceptances
• Government Securities

Providing personalized wealth management to high net-worth individuals through a network of investment managers, financial consultants and other specialists.

Effective portfolio management on both discretionary and non-discretionary basis through the provision of medium to long term investment management services to:

• Pension funds
• Private clients
• Employee Schemes
• Trustees of family settlements and charities

Providing Business Solutions in:

• Financial Arrangement and Management
• Mergers and Acquisitions
• Privatization
• Business Assessment
• Business Structuring
• Data Resource and Management