Nigeria’s financial system faced tighter liquidity on Thursday following the settlement of Nigerian Treasury bills, pushing short-term interest rates above 32% due to limited inflows.
Despite a ₦255 billion injection from FGN bond coupon payments, money market rates remained elevated. The banking system received ₦254.82 billion from bond coupons but was debited ₦503.92 billion, intensifying liquidity pressures.
As a result, the system closed with a net deficit of ₦1.84 trillion, according to updates from Cordros Capital and TrustBanc Financial Group. FMDQ data showed interbank rates held steady, with the Open Repo (OPR) and Overnight (O/N) rates at 32.40% and 32.90%, respectively.
“With no major inflows expected, liquidity pressures will persist, keeping rates above 30%,” TrustBanc stated. Analysts expect tight conditions to continue into the week’s close.
