Nigeria’s interbank lending rates have soared above 32%, hitting their highest level in the third quarter of 2025 as system liquidity turned negative and banks increased borrowings from the Central Bank of Nigeria (CBN).
The surge follows aggressive liquidity mop-up operations by the CBN through open market transactions, which withdrew about ₦2.12 trillion from the financial system.
Data from investment firms showed that liquidity fell to a ₦32.23 billion deficit on Wednesday, despite the absence of Treasury bill auctions. AIICO Capital Limited reported a ₦56.3 billion jump in banks’ borrowing from the CBN’s Standing Lending Facility (SLF) to ₦311.7 billion.
The FMDQ Securities Exchange data revealed that the Open Repo (OPR) rate rose by 240 basis points to close at 32.10%, while the Overnight (O/N) rate climbed 310 basis points to 32.50%.
Market analysts expect rates to remain elevated in the absence of significant liquidity inflows, with banks relying heavily on the SLF to meet short-term funding needs.
The tightening underscores the impact of the CBN’s monetary policy stance and its efforts to control inflation and manage naira volatility.
