Money market yesterday was awash with liquidity as the Nigerian Inter-Bank Offered Rates (NIBOR) dropped for all tenor buckets.
For instance, call tenor dropped to 14.00 percent from 16.37 percent the previous day. Similarly, 7 days and 30 days tenor went down to 14.29 percent and 14.58 percent from 16.45 percent and 16.70 percent, respectively, the previous day.
Sewa Wusu, head of research, Sterling Capital Markets Limited, told BusinessDay on phone that the liquidity in the system may have been as a result of injection from Federation Accounts Allocation Committee (FAAC).
FAAC yesterday shared a total of N620.656 billion amongst the three tiers of government. The Federal Government got the sum of N235.778 billion representing 52.68 percent of the figure and the state governments received N119.590 billion representing 26.72 percent while the local government councils got the sum of N92.199 billion representing 20.60 percent.
Naira yesterday weakened against the US dollar, losing N25 kobo at the inter-bank market to close at N161.10/$ compared to N159.85/$, the previous day, data from Financial Markets Dealers Association have indicated.
