The maturity of over N51 billion treasury bills under the open market operations (OMO) at the weekend may bring moderation to interbank rates this week, according to money market traders.
The Central Bank of Nigeria (CBN) conducted a Primary Market Auction last Wednesday in which N26.1 billion, N11.0 billion and N80.0 billion of the 91-day, 182-day and 364-day instruments were offered at respective stop rates of 13.4 per cent, 17.1 per cent and 18.7 per cent.
To this end, banks in Nigeria have a reduced incentive to lend to the private sector because of the favourable interest on government securities.
By Niyi Jacobs, Business a.m. live staff
- Focus of the week: NIGERIA BREWERIES PLC - Price increases mask volume decline
- ‘Panicking’ as policy option to stem Nigeria’s FX crises
- Business activity in Nigeria plummets to 3-Month low on soaring costs
- Seedbuilders Nigeria expands digital skills programme to empower 100 Nigerians
- Financial experts debate solutions to revive Nigeria's ailing economy