By Boluwatife Oshadiya | March 9, 2026
Key Points
- Analysts expect ₦2.4 trillion in Treasury bill and OMO repayments to inject liquidity into the banking system
- Financial system closed last week with excess liquidity of ₦5.89 trillion
- Interbank lending rates show moderate increases despite strong liquidity conditions
Main Story
Money market analysts expect ₦2.4 trillion in maturing Treasury bills and Open Market Operations (OMO) instruments to inject significant liquidity into Nigeria’s banking system in the coming week.
The anticipated inflows are expected to strengthen funding conditions across the financial sector following substantial repayments from previously issued government securities.
Market reports show the financial system ended the week with excess liquidity of approximately ₦5.89 trillion, supported by the maturity of OMO bills and strategic bank placements at the Central Bank of Nigeria’s Standing Deposit Facility.
Data from several Broadstreet financial institutions indicates the market received about ₦956 billion in OMO repayments, far exceeding the ₦236 billion debit linked to Treasury bill sales during the same period.
Banks typically place surplus liquidity at the Central Bank’s deposit facility to manage daily funding requirements and optimise short-term interest earnings.
Despite the strong liquidity position, short-term interbank lending rates recorded moderate increases.
The overnight Nigerian Interbank Offered Rate (NIBOR) rose 13 basis points week-on-week to 22.38 percent, according to data from Cowry Asset Management Limited.
Other NIBOR tenors also recorded increases, with the one-month rate rising by 4 basis points, the three-month rate by 17 basis points, and the six-month rate by 21 basis points.
Meanwhile, the overnight funding rate increased slightly by 4 basis points to 22.21 percent, while the Open Buy Back (OBB) rate remained unchanged at 22.00 percent.
What’s Being Said
“Large maturities from OMO bills and Treasury securities will likely sustain elevated system liquidity in the near term,” analysts at a Lagos-based investment firm said in a market update.
“However, banks are expected to remain cautious in the interbank market despite strong liquidity levels,” the analysts added.
What’s Next
- Approximately ₦1.69 trillion in OMO bills are scheduled to mature in the coming week
- An additional ₦711.16 billion in Treasury bills will also reach maturity
- Analysts expect these inflows to maintain strong system liquidity and stabilise short-term funding rates
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