Report: Extra liquidity in Nigeria’s banking system surges to ₦3.8 trillion
Nigeria’s Banking System Liquidity Jumps to ₦3.8 Trillion Amid Robust Inflows
Nigeria’s cash market stays extremely liquid, serving to stabilize short-term rates of interest, in response to market analysts.
System liquidity rose sharply following ₦1.5 trillion in disbursements from the Federation Account Allocation Committee (FAAC), supported by average interventions from the Central Financial institution of Nigeria (CBN). The sturdy inflows eased funding pressures, preserving Open Repo (OPR) and In a single day (O/N) lending charges close to flooring ranges.
Funding stories present that banking system liquidity opened with a ₦3.8 trillion surplus, up ₦659 billion from the earlier degree. This improve was pushed by ₦261.4 billion in bond coupon funds and better deposits by the CBN’s Standing Deposit Facility, which rose to ₦2.9 trillion.
Regardless of the liquidity enhance, common funding prices edged up barely — with the OPR regular at 24.50% and the O/N price rising by 3 foundation factors to 24.86%. Analysts count on charges to stay round these ranges within the close to time period.
The week additionally noticed treasury yields decline throughout all tenors, as sturdy liquidity and investor confidence pushed the common Nigerian Treasury Payments yield down by 2 bps to 17.41%, reflecting sustained optimism within the secondary market.