The total deposits by deposit money banks (DMBs) at the Central Bank of Nigeria’s (CBN) Standing Deposit Facility (SDF) rose to N2.52 trillion on Monday, reinforcing strong liquidity in the market.
Investment firms reported that the financial system liquidity remained surplus at ₦2.75 trillion, representing an improvement of ₦175.88 billion from the previous session’s surplus level.
This improvement was driven by increased financial institutions’ placements at the CBN window.
With a shift in appetite for lending, Nigeria’s lenders’ SDF placement rose to ₦2.52 trillion, boosting system liquidity in addition to ₦154.23 billion primary market repayment.
Intermarket liquidity was debited with ₦20 billion borrowing at the Standing Lending Facility (SLF) window by cash-deficient lenders at a higher rate.
Consequently, average funding cost edges lower by 1bps to 22.65%, as the Open Repo Rate (OPR) remains steady at 22.50%, while the Overnight Rate (OVN) slides by 1bps to 22.80%.
Barring any funding activities, analysts at AIICO Capital Limited anticipate a moderate funding cost on Tuesday, amidst an expected inflow of ₦993 billion from the 10-Feb-2026 OMO maturity.
Bullish sentiments persisted in the secondary market for Nigerian Treasury bills as liquidity-driven demand remained strong. Average benchmark yield declined by -2bps to close at 17.61%.
Proceedings in the secondary market for OMO share similar sentiments as the average benchmark yield declined by -17bps to close at 21.17%
System liquidity is expected to remain robust barring any significant outflows. The above projection is anchored on an expected inflow of ₦993.00 billion from the 10-Feb-26 OMO maturity billed for this week. Seplat Fires Up, Investors Bet on Tony Elumelu for Capital Gain
