Liquidity in Nigeria’s banking sector surged on Tuesday following the maturity of Open Market Operation (OMO) bills worth ₦204.87 billion, keeping interbank rates steady while investors anticipate further monetary easing.
Data from AIICO Capital Limited showed financial system liquidity rose to N2.455 trillion from N2.111 trillion the previous day. TrustBanc Financial Group reported a 10% decline in placements at the CBN’s Standing Deposit Facility, which stood at ₦1.75 trillion, reflecting reduced sterilisation pressures.
Banks avoided the borrowing window, signaling comfortable liquidity positions. Interbank rates remained stable, with overnight repo and lending rates closing at 26.50% and 26.92%, respectively. The Nigerian Interbank Borrowing Rate (NIBOR) also recorded modest declines across most tenors.
Meanwhile, the Nigerian Interbank Treasury Bills True Yield (NITTY) dropped across all maturities, with yields on 1-month, 3-month, 6-month, and 12-month papers falling by 21, 40, 63, and 37 basis points, respectively.
Analysts expect additional inflows from the ₦84.29 billion Federal Government bond coupon payment to sustain system liquidity ahead of the ₦290 billion Treasury Bills auction scheduled for midweek.
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