Money Market Liquidity Climbs to N6.6trn, CBN Refunds CRR
Excess liquidity surged to about N6.6 trillion in the money market as the Central Bank of Nigeria (CBN) ignored a series of additional inflows from expired instruments.
The authority’s absence from the market kept liquidity flowing, while deposit money banks (DMBs) stepped up placements at the CBN Standing Deposit Facility (SLF).
After its interest rate adjustment, the CBN refunded some banks for excess cash reserve ratios on deposit, supporting liquidity growth.Interbank rates trend lower, below 35%, reflecting both the liquidity size in the banking system and the adjustment to the monetary policy rate asymmetric ratio.
Until the next policy committee meeting, banks will now borrow from the CBN at 29.50%, reflecting a 50 basis point rate cut.However, banks will earn 24.5% on their deposit placed with the Apex Bank – currently above the average rate on one-year Treasury bills paper.
Surplus liquidity level has kept funding costs lower in the money market. On Tuesday, market liquidity improved further to ₦6.57 trillion level, following an inflow of ₦731.14 billion from the 30-Sept-2025 OMO maturity and an increase in DMB’s deposit with the CBN, according to AIICO Capital Limited.
Banks placed a total sum of ₦5.54 trillion with the CBN at the SDF rate of 24.5%. An update from the FMDQ platform showed that the Open Repo Rate (OPR) held steady at 24.50%, while the Overnight Rate (OVN) dipped by 8 bps to close at 24.92%.
Interbank rates are expected to remain around the same level in the absence of open market operation action, AIICO Capital Limited said in its note.Lafarge Africa Delivers 80% Return on Investment in 9-Month
