NIBOR, NITTY Moderate amid Sustained Liquidity Ease…


In the just concluded week, NITTY further moderated for all maturities tracked on sustained buy pressure – yields on 1 month, 3 months, 6 months and 12 months maturities moderated to 9.47% (from 10.13%), 10.22% (from 10.61%), 11.24% (from 12.30%) and 12.54% (from 13.14%) respectively.

Elsewhere, given the matured bills worth N105.21 billion via Open Market Operations, and in the absence of auctioned bills by CBN, we saw the financial system awash with liquidity.

Consequently, NIBOR fell for all tenure buckets in line with our expectation, viz: overnight funds, NIBOR for 1 month, 3 months and 6 months tenure buckets shrank to 2.85% (from 6.69%), 10.86% (from 11.64%), 11.28% (from 12.58%) and 12.33% (from 13.71%) respectively.

In the new week, CBN will auction T-bills worth N107.05 billion, viz: 91-day bills worth N5.85 billion, 182-day bills worth N26.60 billion and 364-day bills worth N74.60 billion.

We expect their stop rates to decrease marginally due to increase demand amid boost in system liquidity which, in addition to maturing T-Bills worth N41.68 billion, is also expected to result in decline in NIBOR.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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