Short-term interest rates in Nigeria closed on a mixed note after statutory allocations from the Central Bank of Nigeria (CBN) to state governments injected fresh liquidity into the banking system.
The interbank market continued to enjoy robust liquidity, supported by additional inflows, which helped maintain the stability of benchmark rates at 26.5%.
According to market data from AIICO Capital Limited, system liquidity improved significantly, with inflows of N410 billion raising total liquidity to N2.87 trillion, up from N2.46 trillion the previous day.
With no major funding pressures, commercial banks were seen placing excess cash at the CBN’s Standing Deposit Facility, while borrowing activity at the lending window remained minimal.
Reports from Cowry Asset Management showed that the Nigerian Interbank Borrowing Rate (NIBOR) closed mixed, with the Overnight rate ticking up slightly by 6 basis points to 26.92%.
Meanwhile, money market rates also reflected the liquidity-driven mood. The Open Repo Rate (OPR) closed flat at 26.50%, while the Overnight Lending Rate eased by 4 basis points to 26.88%.
Treasury bill yields varied across maturities. The 1-month and 6-month papers rose by 5 bps and 15 bps, respectively, while the 3-month and 12-month tenors declined by 7 bps and 20 bps, respectively. On average, Nigerian Treasury bill yields slipped by 3 bps to close at 18.43%.
Analysts note that investors continue to exhibit strong sentiment in the secondary market, buoyed by liquidity inflows and expectations of stable monetary conditions.
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