By Boluwatife Oshadiya | October 29, 2026
Key Points
- Nigerian banking system liquidity falls by ₦760 billion to ₦8.59 trillion on Tuesday’s close, according to AIICO Capital Limited
- Overnight NIBOR rises four basis points to 20.25%, while the overnight rate eases one basis point to 20.35% and OPR holds at 20.00%
- Thursday’s Treasury bills auction settlement is expected to withdraw ₦71.16 billion from the financial system, potentially influencing short-term funding costs
Main Story
Liquidity in Nigeria’s banking system eased to ₦8.59 trillion, according to AIICO Capital Limited, as money market rates moved in different directions ahead of Thursday’s Treasury bills auction settlement.
The investment firm said liquidity declined by ₦760 billion from the previous session. Banks opened with ₦196.34 billion and placed ₦8.41 trillion at the Central Bank of Nigeria’s Standing Deposit Facility (SDF), reflecting substantial surplus funds alongside limited lending appetite.
The CBN did not conduct open market operations following the maturity of ₦2.13 trillion in Open Market Operations (OMO) bills, according to the supplied market report. However, financial institutions accessed ₦15 billion through the CBN’s Standing Lending Facility (SLF) during midweek operations.
Money market benchmarks recorded mixed movements. Overnight NIBOR rose four basis points to 20.25%, while the overnight rate eased one basis point to 20.35%. The Open Repo (OPR) rate remained unchanged at 20.00%.
Treasury bills also recorded mixed secondary-market yield movements. Yields on the three-month and six-month instruments rose four basis points each, while the one-month yield declined two basis points and the 12-month yield remained unchanged.
Selective buying interest supported the market, with the average Nigerian Treasury bills yield falling one basis point to 17.91%, according to the report.
What’s Being Said
“Funding costs should stay close to the 20.00% OPR as long as the system has plenty of cash. T-bill auction settlement will take out ₦71.16 billion from the system. Rates could rise if the CBN withdraws more cash through OMOs or T-bill sales,” AIICO Capital Limited said.
The supplied report does not include a separate CBN statement or an independent analyst response.
What’s Next
- Thursday’s Treasury bills settlement: The reported ₦71.16 billion liquidity withdrawal could affect short-term funding conditions.
- Further CBN liquidity operations: Any additional OMO activity or Treasury bills sales could influence money market rates, according to AIICO Capital.
The Bottom Line: The banking system still has a substantial reported liquidity surplus, but the divergence in money market rates shows that aggregate cash levels do not necessarily translate into uniform funding conditions. The coming Treasury bills settlement and any further CBN liquidity operations will be important determinants of near-term rate movements.
