Interbank lending rates remained largely unchanged as excess liquidity in the banking system continued to cushion the money market. The steady flow of funds allowed banks to channel surplus capital into the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF), reflecting limited short-term borrowing needs.
The absence of significant funding pressure helped maintain stability in benchmark short-term interest rates, reducing demand for the CBN’s more expensive Standing Lending Facility (SLF). Liquidity levels opened the week on a strong note, bolstered by a ₦259.7 billion Federal Government bond coupon payment, which lifted the system’s opening balance to approximately ₦1.6 trillion.
Over the previous week, deposit money banks placed over ₦5 trillion with the CBN via the SDF, a sign of ongoing liquidity surplus. Despite this, Nigerian Interbank Offered Rates (NIBOR) showed mixed movements across various tenors.
Key money market indicators reflected muted activity. Both the Open Buy Back (OBB) rate and the Overnight (OVN) lending rate held steady at 26.50% and 26.88%, respectively.
Elsewhere, the Nigerian Interbank Treasury Bills True Yield declined across all maturities, while the average yield on Treasury bills slipped slightly by 0.04 percentage points to 20.79%.
With no significant outflows anticipated, market analysts expect liquidity conditions to remain robust in the near term, keeping interbank rates anchored at current levels.
