The Nigerian money market remained awash with liquidity last week, supported by a net inflow of N1.53 trillion, largely driven by the maturity of N651.7 billion in Nigerian Treasury Bills (Tbills) and N350 billion in Open Market Operation (OMO) bills.
The ample system liquidity continued to ease funding pressures, leading to a broad-based decline in interbank rates.
The Nigerian Interbank Offered Rate (NIBOR) fell across all tenors, with the Overnight NIBOR shedding 23 basis points (bps) week-on-week to 26.77%. The 1-month, 3-month, and 6-month rates also dropped by 98bps, 64bps, and 28bps, respectively.
In tandem, the Overnight (O/N) and Repo rates closed at 26.50% and 26.86%, with the O/N rate holding steady and the Repo rate declining marginally by 10bps.
In the secondary market, the Nigerian Treasury Bills (NTB) yield curve was largely bearish, particularly at the mid-to-long end, with notable sell pressure on the November 2025 and December 2025 maturities. As a result, the average T-bills yield climbed by 36bps to 19.86%.
Meanwhile, yields on the Nigerian Treasury Bill Tenor Yield (NITTY) showed mixed trends. The 1-month NITTY declined by 13bps, while the 3-month, 6-month, and 12-month tenors rose by 8bps, 4bps, and 8bps, respectively.
Looking ahead, market observers expect liquidity to remain buoyant with anticipated inflows of N927.25 billion in T-bill maturities and N150 billion in OMO maturities this week.
According to them, these inflows into the money market are likely to support robust system liquidity and drive strong investor participation in the scheduled auctions.
