Money market rates ended last week on a mixed note as the Central Bank of Nigeria (CBN) withdrew ₦2.3 trillion from the banking system via Open Market Operations (OMO) and Treasury bill auctions to curb excess liquidity.
Despite inflows from maturing OMO bills (₦600 billion) and Treasury bills (₦258 billion), much of the liquidity was sterilised at the auctions, leaving banks with a volatile funding profile. Liquidity fell to a deficit of ₦1.61 trillion midweek before recovering to a ₦750.3 billion surplus by Friday.
The Nigerian Interbank Offered Rate (NIBOR) rose across all maturities, signalling increased short-term funding pressure. The Open Buy Back (OPR) rate was steady at 26.50%, while the Overnight (O/N) rate inched up to 27.00%.
Analysts expect funding rates to remain relatively stable barring any major liquidity shocks, although tight monetary conditions continue to influence interbank market trends.
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