Money market rates remained stable despite a widening deficit in the banking system, as liquidity conditions deteriorated further, pushing the market deeper into negative territory on Thursday. The strain on liquidity followed the settlement of ₦516.59 billion for Nigerian Treasury Bills (NTBs) auctioned to investors, alongside simultaneous inflows from matured bills.
The Nigerian Interbank Offered Rate (NIBOR) climbed across all tenors, reflecting tighter liquidity conditions. Data from the FMDQ platform showed that interbank rates remained elevated, with the Overnight Policy Rate (OPR) and Overnight Rate (O/N) reaching 32.33% and 32.75%, respectively.
With no significant inflows expected as the week winds down, analysts project that short-term benchmark interest rates will remain high. “We anticipate that interbank rates will stay elevated unless there is a substantial liquidity injection,” AIICO Capital Limited stated in a note.
The banking system deficit deepened by 178%, closing at ₦855.77 billion on Thursday, according to TrustBanc Financial Group Limited. The firm expects liquidity strain to persist, keeping funding rates elevated.
Additionally, the Nigerian Interbank Treasury Bills True Yield rose across most tenors, driven by selling pressure as investors repositioned for improved liquidity.
