N378bn Treasury Bills Maturities to boost system liquidity

NIGERIA’S money market is set for another liquidity boost as ₦378 billion worth of Treasury bills mature this week. The maturities, comprising ₦300 billion in Open Market Operation (OMO) bills and ₦78 billion in Nigerian Treasury Bills (NTBs), are expected to sustain elevated liquidity levels across the financial system.

In addition, the Central Bank of Nigeria (CBN) has announced plans to auction ₦290 billion in fresh NTBs across the standard maturities. Market analysts say the auction will play a critical role in shaping yield dynamics, with investors closely monitoring rate movements amid strong demand for government securities.

This week, the financial system closed with a net liquidity surplus of ₦2.09 trillion, buoyed by inflows from ₦600 billion OMO maturities, ₦184.75 billion NTB maturities, and steady placements at the CBN’s Standing Deposit Facility window. The ample liquidity helped keep funding pressures in check, with interbank rates remaining broadly stable.

ALSO READ: Nigerians already suffering, new taxes will kill businesses — ADC

The Nigerian Interbank Offered Rate (NIBOR) showed a mixed trend. The Overnight NIBOR eased by 9 basis points to 26.83%, reflecting the effect of improved liquidity. However, the 1-month, 3-month, and 6-month NIBOR climbed 9bps, 13bps, and 18bps, respectively, as banks took cautious positions ahead of future obligations. Similarly, the Overnight Repo (OVN) dipped by 4bps to 26.96%, while the Open Repo Rate (OPR) held steady at 26.50%.

In the secondary market, investor sentiment remained upbeat, driving the Nigerian Treasury Bills Yield (NITTY) higher across all teno