Interbank lending rates remained unchanged for the fourth consecutive week on Thursday, averaging 10.5 percent, supported by ample liquidity in the banking system.
The cash balance that lenders hold at the Central Bank of Nigeria (CBN) opened at N278 billion surplus on Thursday, down from N386.89 billion last week.
Traders said state-owned energy company Nigerian National Petroleum Corporation (NNPC) recalled N124 billion, part of its deposits with lenders in the week, but that was offset by inflows of about N207 billion in matured treasury bills.
The secured Open Buy Back was unchanged for the fourth consecutive week at 10.25 percent, 1.75 percentage points below the central bank’s benchmark rate of 12 percent.
Overnight placement and call money were also unchanged at 10.5 percent and 10.75 percent, respectively.
The cost of funds in the interbank market should remain stable next week as well, traders said. Government agencies will be disbursing budget allocations, providing another influx of liquidity.
Africa’s largest economy distributed N641.38 billion to the three tiers of government as March revenue allocations on Wednesday.
Nigeria’s financial markets are closed on Friday and Monday for Easter holiday. They reopen on Tuesday.
