By Boluwatife Oshadiya| August 11, 2026
Key Points
- Overnight lending rate declines one basis point to 22.09% as system liquidity rises
- Banking-system liquidity opens at ₦4.32 trillion, up ₦27.89 billion from Friday
- Banks’ ₦4.09 trillion placement lifts Standing Deposit Facility balances to ₦4.35 trillion
Main Story
Nigeria’s overnight lending rate eased slightly on Monday as increased bank placements pushed financial-system liquidity higher despite the absence of an open market operation by the Central Bank of Nigeria (CBN).
Investment banking analysts reported that system liquidity opened at a credit balance of ₦4.32 trillion, an increase of ₦27.89 billion from Friday’s closing level.
Banks’ placements were the main contributor to the higher liquidity position, with ₦4.09 trillion placed through the Standing Deposit Facility, taking the facility’s balance to ₦4.35 trillion.
FMDQ money-market data showed the Open Buyback rate remained unchanged at 22%, while the overnight lending rate declined one basis point to 22.09%.
The movement came despite expectations of an open market operation from the CBN amid the elevated liquidity position.
Market analysts expect interbank funding rates to remain broadly range-bound in the near term as banks continue to operate with relatively high liquidity balances.
MarketForces Africa reported that financial-system liquidity had expanded by ₦1.10 trillion to ₦4.08 trillion in the previous week, with inflows from Open Market Operations (OMO) maturities and Standing Deposit Facility repayments offsetting liquidity absorption through OMO issuances.
What’s Being Said
Money-market analysts said the increase in system liquidity was driven primarily by bank placements and contributed to the marginal decline in the overnight lending rate.
Editorial note: A verified direct quotation from a named money-market analyst or FMDQ/CBN statement should be inserted here before publication, as the supplied source material contains no direct quote.
What’s Next
- Banks will monitor liquidity conditions and interbank funding rates through the next trading sessions
- Market participants will watch for any CBN liquidity-management operation following the elevated system balance
- Overnight and Open Repo rates will remain key indicators of short-term money-market conditions
Bottom Line
The Bottom Line: The marginal decline in the overnight lending rate reflects abundant liquidity rather than a broad shift in monetary conditions. The direction of future CBN liquidity operations will determine whether the current ease in funding costs persists.
