Nigeria’s money market remained largely stable on Tuesday as commercial banks continued to channel excess liquidity into the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF).
The system’s surplus liquidity, which opened at ₦3.8 trillion, rose slightly by ₦21.6 billion from the previous level. The CBN’s SDF window saw a spike in placements to ₦3.1 trillion as banks sought to optimise returns amid subdued borrowing activity at the Standing Lending Facility (SLF).
According to market updates from AIICO Capital Limited, banks are earning 24.5% on deposits at the SDF, taking advantage of the prevailing liquidity glut. The report added that CBN’s cautious liquidity management helped keep money market rates below the 25% threshold.
The average interbank funding rates remained unchanged, with the Overnight Rate (OVN) at 24.86% and the Open Buy Back (OBB) rate steady at 24.50%. Market participants expect rates to stay around current levels unless new funding pressures emerge.
Treasury bills trading was mixed, with yields on 1-month and 3-month maturities rising by 34bps and 1bp, respectively, while 6-month and 12-month bills eased by 9bps and 4bps. Consequently, the average Nigerian Treasury Bill (NTB) yield edged down by one basis point to 17.40%, reflecting moderate investor optimism.
