By Boluwatife Oshadiya | April 20, 2026
KEY POINTS
- System liquidity moderates to ₦3.84 trillion from ₦5.41 trillion
- NIBOR rises across tenors amid liquidity tightening
- ₦1.6 trillion inflows expected to support market conditions
MAIN STORY
Nigeria’s money market recorded mixed rate movements last week as system liquidity declined to ₦3.84 trillion, down from ₦5.41 trillion recorded in the previous week, reflecting gradual tightening despite still-elevated surplus levels.
The market opened strongly with liquidity around ₦5.0 trillion, supporting lower interbank funding rates. However, conditions tightened during the week following a ₦2.17 trillion OMO debit, which reduced available liquidity and pushed borrowing rates higher.
The Nigerian Interbank Offered Rate (NIBOR) rose across all tenors, with the overnight rate increasing by 7 basis points to 22.39%. Other tenors followed a similar trend, with the one-month, three-month, and six-month rates settling at 22.99%, 23.69%, and 24.19%, respectively.
Despite this upward pressure, short-term funding conditions showed slight easing at the end of the week, with the overnight rate declining by 19 basis points to 22.16%, while the Open Repo Rate remained unchanged.
“Investor behaviour continues to show a preference for short and long tenors, with limited interest in mid-curve instruments,” Cowry Asset Limited said.
WHAT’S BEING SAID
“Liquidity remains relatively robust despite recent tightening pressures,” Cowry Asset Limited noted.
“The market is positioning ahead of expected inflows and the NTB auction,” analysts added.
WHAT’S NEXT
- ₦1.6 trillion inflows from maturing instruments expected to boost liquidity
- ₦750 billion NTB auction likely to absorb part of excess funds
- Interbank rates expected to fluctuate between easing and tightening pressures
THE BOTTOM LINE:
Liquidity conditions remain supportive, but policy operations and upcoming auctions will determine whether short-term rates stabilise or resume an upward trend.
