By Boluwatife Oshadiya | April 10, 2026
Key Points
- Banking system liquidity opens at ₦6.62 trillion despite auction debits
- Overnight and Open Repo rates hold firm at 22.31% and 22.00%
- Treasury bills yields ease to 17.43% on improved demand
Main Story
Money market rates remained broadly stable on Thursday as Nigeria’s financial system continued to reflect strong liquidity conditions, even after significant debits from the latest Nigerian Treasury bills (NTB) auction.
System liquidity opened at a surplus of ₦6.62 trillion, according to market data, representing a decline of ₦472.25 billion from the previous session. The drop was primarily driven by a ₦731.38 billion outflow tied to NTB auction settlements, partially offset by ₦351.89 billion inflows from maturing bills dated April 9, 2026.
Despite the liquidity adjustment, interbank funding conditions showed little stress. The Overnight (OVN) rate held steady at 22.31%, while the Open Repo Rate (OPR) remained unchanged at 22.00%, underscoring the absence of funding pressure across the system.
Analysts noted that the Central Bank of Nigeria (CBN) refrained from conducting open market operations (OMO), effectively allowing excess liquidity to persist. Deposit Money Banks (DMBs) maintained elevated placements at the CBN’s Standing Deposit Facility (SDF), which stood at ₦6.86 trillion.
Average funding costs remained largely unchanged at 22.16%, reflecting the market’s equilibrium despite high liquidity levels. Meanwhile, yields in the Treasury bills market declined, with the average yield easing by 14 basis points to close at 17.43%, suggesting improved investor appetite for short-term government securities.
What’s Being Said
“Liquidity in the banking system remains robust, and in the absence of immediate CBN sterilisation, funding rates are expected to hold around current levels,” AIICO Capital Limited said in a market note.
“The moderation in NTB yields indicates a cautious but returning demand for fixed-income instruments,” a Lagos-based fixed income analyst told BizWatch Nigeria.
What’s Next
- The CBN may conduct OMO auctions to mop up excess liquidity if system surpluses persist
- Market participants will monitor upcoming NTB issuances for yield direction
- Interbank rates are expected to remain range-bound barring policy intervention
