Robust liquidity in the financial system kept short-term benchmark rates stable midweek, despite outflows from net Open Market Operation (OMO) bill settlements.
According to AIICO Capital Limited, system liquidity closed at ₦1.373 trillion on Wednesday, down ₦94.10 billion from the opening balance of ₦1.467 trillion. Analysts noted that banks’ use of the Central Bank of Nigeria’s (CBN) Standing Lending Facility has dropped significantly, with lenders now channelling excess funds into the deposit facility instead.
Despite a net OMO settlement of ₦160.40 billion, the interbank market maintained ample liquidity, holding rates steady at 26.5%. Both the Overnight Policy Rate (OPR) and Overnight (O/N) rate remained unchanged at 26.50% and 26.96%, respectively. Analysts expect rates to hover near current levels as no major funding pressures are anticipated, even with a Nigerian Treasury Bills settlement of ₦585.25 billion (net debit of ₦260.84 billion).
The Nigerian Interbank Offered Rate (NIBOR) fell across all tenors, with the Overnight rate dipping by 2 basis points to 26.99%. The 1-month, 3-month, and 6-month rates dropped by 27, 18, and 18 basis points, respectively. Cowry Asset Limited attributed the decline to improved system liquidity following OMO repayments by the CBN.
Meanwhile, yields in the Nigerian Treasury Bills (NT-Bills) market showed a mixed performance. Yields on the 1-month, 3-month, and 12-month tenors rose by 14, 16, and 11 basis points, respectively, while the 6-month tenor eased by 7 basis points. On average, NT-Bills yields fell by 23 basis points to 18.61%, reflecting strong investor sentiment in the secondary market.
