The Business NG - BusinessNg

In this issue

CBN Offers N600bn OMO Bills, Allots N81bn to Investors Amid Excess Liquidity
The Central Bank of Nigeria (CBN) on Monday offered N600 billion in Open Market Operations (OMO) bills as part of its efforts to mop up excess liquidity from the financial system. Despite the large offer, the apex bank allotted N81 billion to investors during the auction, reflecting cautious demand in the money market. The financial system opened the week with strong liquidity levels, largely driven by banks’ continued placements in the CBN’s Standing Deposit Facility (SDF). The surplus liquidity influenced movements in short-term interest rates, with the Nigerian Interbank Offered Rate (NIBOR) declining across most tenors. Data from the market showed that the overnight lending rate dropped by 8 basis points to 22.29 percent, indicating abundant liquidity within the banking system despite the central bank’s intervention through the OMO auction. Meanwhile, money market rates recorded mixed movements during the session. While the overnight rate declined slightly, the Open Repo (OPR) rate remained unchanged at 22.00 percent, suggesting relatively stable funding conditions in the interbank market.