Rates Drop as OMO Inflow, Banks Lodgments Buoy Liquidity
Inflows from expired OMO bills and from deposit money banks (DMBs)’ lodgments buoyed liquidity in the financial system, investment firms said in separate market updates.
Reflecting the Central Bank’s absence of an open market operation, liquidity profile surged by 17% on the day, while interbank rates aligned with the monetary policy adjustment.
System liquidity opened today on a surplus of ₦3.11 trillion, reflecting an increase of ₦461.98 billion from the previous session. This was driven by inflows of ₦730.70 billion from 24 Feb 2026 OMO maturity and ₦4.47 billion Primary Market Repayments.
The financial system was further buoyed by an increase in Deposit Money Banks (DMBs) placement at the CBN’s Standard Deposit Facility (SDF) window to ₦2.28 trillion.
Consequently, average funding cost eased significantly by 47bps to 22.13%, as the Open Repo Rate (OPR) fell by 50bps t0 22.00%, while the Overnight Rate (OVN) dropped by 43bps to 22.25%.
Investment firm, TrustBanc Financial Group Limited, said in a commentary note that interbank rates aligned with the new monetary policy rate-adjusted floor of 22.00%
Barring any near-term funding activities, analysts at AIICO Capital Limited expect funding rates to remain within the current range of 22.10% – 22.30%.
The secondary market for Nigerian Treasury closed bullish, with the average benchmark yield declining by 36bps to 17.04%. Similarly, the average benchmark yield moderated by -1bp to close at 20.13% in the OMO market. Nigeria’s Big Banks Near N14trn MV in Stock Market
