By Boluwatife Oshadiya | September 9, 2026
Key Points
- Money market liquidity rises to N7.35 trillion from N4.33 trillion at the previous close
- Overnight lending rate falls three basis points to 22.15%, while the Open Repo Rate remains at 22%
- CBN auctions about N4.4 trillion in OMO bills as banks maintain heavy placements at the Standing Deposit Facility
Main Story
Money market liquidity rose to N7.35 trillion as of Tuesday, easing short-term funding pressure despite the Central Bank of Nigeria’s aggressive open market operations.
The liquidity balance increased by N3.02 trillion from Monday’s closing level of N4.33 trillion, according to a market report by Herwood Securities Limited.
The surplus liquidity supported lower overnight funding costs, with the overnight lending rate declining three basis points to 22.15%. The Open Repo Rate (OPR), however, remained unchanged at 22%.
Deposit Money Banks maintained significant placements with the CBN’s Standing Deposit Facility (SDF), indicating that banks had limited immediate demand for central bank borrowing despite the scale of liquidity in the system.
The CBN allotted about N4.4 trillion in OMO bills on Tuesday as part of its liquidity-management operations. The market is also scheduled to absorb a N500 billion Treasury bill auction on Wednesday.
The combined settlements are expected to reduce excess liquidity in the financial system. However, the impact could be partly offset by about N3 trillion in expected OMO repayments.
Herwood Securities said the money market was likely to remain stable, with the prevailing liquidity surplus providing support for short-term funding conditions.
What’s Being Said
“The money market is expected to remain stable, with liquidity conditions still supportive despite the sizeable OMO allotment.” — Herwood Securities Limited
The investment firm also said short-term funding rates were likely to remain broadly unchanged because the system retained sufficient liquidity to meet near-term funding requirements.
What’s Next
The CBN is scheduled to conduct a Treasury bill auction with an offer size of N500 billion on Wednesday.
Market participants will also monitor the expected N3 trillion in OMO repayments and subsequent liquidity movements for their effect on short-term funding rates.
Bottom Line
The Bottom Line: The sharp rise in system liquidity is keeping money market funding conditions comfortable even as the CBN intensifies liquidity sterilisation through OMO auctions. The direction of rates will depend largely on how upcoming auction settlements interact with expected OMO repayments.
