LAGOS Jan 17 Nigerian interbank lending rates
eased to an average of 10.3 percent on Friday, compared with
10.5 percent the previous week, pressured by a surge in cash
supply from matured debt notes.
The central bank repaid about 419 billion naira ($2.62
billion) in special open market operation (OMO) debt notes on
Friday and 158 billion naira in treasury bills the previous day,
"We are still expecting the posting of additional funds from
December budget allocations to states and local government by
Monday and this will keep the system liquid for the better part
of the month," one dealer said.
Nigeria distributed about 581.5 billion naira among its
three tiers of government on Thursday with around half of the
funds going to states and local governments.
The secured open buy back (OBB) closed at 10.15 percent,
compared with 10.25 percent last week, 1.85 percentage points
lower than the central bank's benchmark rate.
Overnight placement dropped to 10.25 percent from 10.50
percent, while call money closed at 10.50 percent against 10.75
percent last week.
($1 = 159.9 naira)