Nigerian money market rates fell on Wednesday following a major inflow from Open Market Operation (OMO) maturities, which eased pressure on system liquidity.
Despite an earlier deficit of about ₦95 billion in the financial system, data from the Central Bank of Nigeria (CBN) indicated that liquidity conditions improved significantly after a ₦854.46 billion OMO maturity credit was injected into the market.
According to AIICO Capital Limited, the liquidity boost triggered a sharp drop in interbank rates, with the Nigerian Interbank Borrowing Rate (NIBOR) falling across major tenors. Overnight, 1-month, 3-month, and 6-month rates declined by 2.96%, 1.25%, 1.28%, and 1.01%, respectively, Cowry Asset Management Limited reported.
The money market also recorded a mixed trend in other indicators. The Open Repo Rate (OPR) dipped 30 basis points to 32.10%, while the overnight lending rate edged slightly higher by 30 basis points to 32.40%.
Meanwhile, the Nigerian Interbank Treasury Bills True Yield curve declined across most maturities. However, secondary market sell-offs lifted the average yield by 13 basis points to 18.12%.
Analysts at AIICO Capital noted that with no major funding flows anticipated in the immediate term, rates are expected to remain close to current levels.
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