Business
Overnight lending rate eases as naira reach banks
Nigeria’s overnight interbank lending rate fell to 10 percent on Friday from 14 percent a week ago as October budget allocations to government agencies reached the banking system.
Nigeria distributed 420 billion naira ($1.33 billion) to its three tiers of government for October last week, with some portion passed through the banking system.
Africa’s largest economy relies on crude oil sales for two-thirds of its national income. Proceeds from the sale provide substantial liquidity to the money markets.
Traders said the central bank sold treasury bills on Wednesday to soak up some of the liquidity, but the amount sold was not enough to affect lending rates.
They also said the regulator offered to sell more bills on Friday, but most lenders declined to participate, choosing to hold cash because of the frequency of withdrawals from their customer accounts.
Traders expect money market rates to stay flat next week as activity slows towards the end of the year.
-
Latest7 days agoPastor Chris Oyakhilome announces mother’s passing at 88 [VIDEO]
-
Football5 days agoHow David Beckham made $51.1m from 2026 World Cup, surpassing winners’ prize
-
Latest1 day agoUS Immigration fees rise from October 16 as USCIS announces new charges
-
Comments and Issues6 days agoFani-Kayode on Atiku: Separating claims from the record
-
Crime1 week agoPolice arrest suspect, launch manhunt for 2 others over Delta Education Director’s death
-
Latest1 week agoHow adulterated palm oil, coloured pepper are putting consumers at risk
-
Crime7 days agoDeaths in NSCDC Custody: Can Nigeria guarantee the safety of detainees?
-
Business4 days agoOpenAI shelves GPT-6.1 astra release over safety concerns