Nigerian Money Market Liquidity Surges, Funding Rates Increase Amid OMO Inflow

Nigeria's banking system experienced a significant liquidity surge of 60.55% on Tuesday, reaching approximately N6.49 trillion from N4.04 trillion, primarily due to a N2.41 trillion inflow from expired Open Market Operation (OMO) bills. Despite this increase, the Central Bank of Nigeria (CBN) did not conduct an open market operation to absorb the excess liquidity. Consequently, funding rates rose, with the Open Repo rate climbing to 20.40% from 20.00% and the Overnight rate edging up to 20.81% from 20.72%.