Nigeria’s Financial System Liquidity Boost Expected

This week, N148.86 billion in treasury bills maturing via primary market is anticipated to increase banking liquidity, potentially lowering interbank lending rates. Analysts at Cowry Asset Management Limited noted this effect.

Interbank lending rates declined last week across all maturities, with NIBOR dropping to 5.00% for overnight, 13.51% for one month, 15.39% for three months, and 17.19% for six months.

The Nigerian Inter-Bank Treasury bill True Yield (NITTY) also decreased for most maturities, reflecting reduced borrowing costs for short-term investments.

Uche Uwaleke, a banking professor at Nasarawa State University, highlighted oil price volatility as a potential risk factor for banks with significant oil sector exposure in 2018.