Market Rates Slide as OMO Inflow Boosts System Liquidity
Pressure on money market rates declined as OMO inflow boosted the liquidity level in the financial system on Wednesday. Banks were noted to ramp up borrowing from the Central Bank of Nigeria (CBN) standing lending facility window to meet daily funding requirements.
The last data update cited from the CBN platform revealed that the liquidity balance in the financial system was about N95 billion in deficit. According to AIICO Capital Limited, interbank rates dropped sharply following today’s ₦854.46 billion OMO maturity credit, which significantly eased liquidity pressure.
The Nigerian Interbank Borrowing Rate declined across key tenors, as the overnight, 1-month, 3-month, and 6-month rates dropped by 2.96%, 1.25%, 1.28%, and 1.01%, respectively, Cowry Asset Management Limited reported.
Similarly, money market rates reflected a mixed trend, with the Open Repo Rate (OPR) falling 30 bps to 32.10%, while the overnight lending rate inched up by 30 bps to 32.40%.
The Nigerian Interbank Treasury Bills True Yield curve declined across most maturities, although sell-offs in the secondary market lifted the average yield marginally by 13 bps to 18.12%.
The CBN last updated the official liquidity figures on 15 Aug 2025, analysts at AIICO Capital Limited said in an investor note, adding that rates should hold near current levels as no major funding flows are expected. #Market Rates Slide as OMO Inflow Boosts System Liquidity
