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Overnight rate falls as system liquidity rises to ₦5.33tn ahead of OMO settlements
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BizWatchNigeria.Ng
Opening system liquidity rose by 5.46% from ₦5.05 trillion to ₦5.33 trillion, creating ample cash within the banking system and reducing pressure on short-term funding rates.
Consequently, the Nigeria Overnight Financing Rate (NOFR) held steady at 22.20%, while the Overnight (O/N) rate declined by one basis point to 22.14%.
What’s NextMarket participants will monitor whether the CBN conducts additional OMO auctions to absorb excess liquidity in the banking system.
The Bottom Line:The rise in banking system liquidity continues to ease short-term funding pressures despite the CBN’s aggressive OMO issuance.
If excess liquidity persists without additional sterilisation measures, money market rates are likely to remain relatively stable while supporting continued demand for government securities.