• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Sunday, August 31, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Bond Payments To Trigger Liquidity Surge

by Bukola Aro-Lambo
4 months ago
in Business
Share on WhatsAppShare on FacebookShare on XTelegram

The Nigerian money market is poised for a liquidity boost as inflows from Federal Government of Nigeria (FGN) bond coupon payments worth N143.13 billion are expected to ease pressure on overnight lending rates this week.

Advertisement

This follows a marginal rise in the overnight (OVN) rate, which expanded by 12 basis points week-on-week to 27.0 per cent driven by debits for net Nigerian Treasury Bills (NTB) issuance totalling N48.33 billion. Despite this, system liquidity remained healthy, albeit lower, closing the week at a net long position of N915.26 billion, down from N1.36 trillion the previous week.

Analysts said, barring any liquidity mop-up operations by the Central Bank of Nigeria (CBN), the forthcoming coupon inflows will keep the financial system sufficiently liquid. This could lead to a moderation in short-term interest rates, providing relief for banks and other financial institutions that rely on overnight borrowing.

While the treasury bills market remained bullish, leading to a decline in yields, the bond market saw modest bearish sentiment. However, analysts forecast that improved liquidity and a potential dovish monetary policy stance could lead to more favourable borrowing costs in the medium term.

Meanwhile, despite a $200 million intervention by the Central Bank of Nigeria (CBN), the naira weakened further last week, closing at N1,610.50 per dollar, a 1.3 per cent week-on-week decline, raising fresh concerns about the effectiveness of the apex bank’s currency management strategy.

RELATED

Ojulari’s First 100 Days at NNPC Ltd: A Bold Start Anchored On Reform, Transparency, And Clean Energy

Petroleum Marketers Warn Of Oil Market Structure Disruption

12 hours ago
5 Most Lucrative Businesses In Nigeria For 2024

Naira Sees Slight Improvement In August With Reserves Rising

12 hours ago
ADVERTISEMENT

The depreciation came even as Nigeria’s gross external reserves recorded a second consecutive week of growth, rising by $86.67 million to $38.10 billion as of May 6. However, this uptick in reserves was not enough to support the naira in the face of persistent market pressures, including tepid capital inflows and sustained demand for foreign exchange by importers and investors.

However, the naira showed strength in the forward contracts market, appreciating slightly across all tenors, with the one-year forward gaining 1.7 per cent to close at N1,988.66 to the dollars suggesting pricing in some longer-term optimism around exchange rate stability.

Analysts believe that, while stronger external reserves enhance the CBN’s capacity to intervene, the currency’s outlook in the near term remains vulnerable to global financial conditions and Nigeria’s fiscal dynamics.

ADVERTISEMENT

In an email note, analysts at Cordros Research said: “we believe the persistent global pressures will continue to pose downside risks to naira stability in the near term, given their impact on capital flows. Nonetheless, relatively stronger forex reserves should bolster the CBN’s capacity to manage excess naira volatility through sustained market interventions in the near term.”


Join Our WhatsApp Channel



Tags: Nigerian Treasury Bills (NTB)
SendShare10172Tweet6357Share
ADVERTISEMENT
Previous Post

Netzence Launches Ghana Hub, Targets Emission Tracking In West Africa

Next Post

FCE Akoka Students Tackle NANS Over Attack On Management, Alleged Neglect

Bukola Aro-Lambo

Bukola Aro-Lambo

You May Like

Ojulari’s First 100 Days at NNPC Ltd: A Bold Start Anchored On Reform, Transparency, And Clean Energy
Business

Petroleum Marketers Warn Of Oil Market Structure Disruption

2025/08/31
5 Most Lucrative Businesses In Nigeria For 2024
Business

Naira Sees Slight Improvement In August With Reserves Rising

2025/08/31
‘What Nigeria Should Do To Advance Gas Sector Growth’
Business

Group Offers Path To In-country Oil & Gas Training

2025/08/31
WiM-Africa Lists Gains, Sets Goals
Business

Women In Mining Firm Up Plan To Resolve Sectoral Challenges

2025/08/31
MTN Allots Incentive Shares, As Trading Opens With N4bn Loss
Business

MTN Nigeria Launches Initiative To Promote Online Safety For Children

2025/08/31
Firm Seeks Stronger Laws, Govt Collaboration To Improve Safety Practices
Business

Firm Seeks Stronger Laws, Govt Collaboration To Improve Safety Practices

2025/08/31
Leadership Conference advertisement

LATEST

Police Arrest Man For Alleged Killing Of 5-yr-old Boy In Adamawa

Martinez Missing In Villa Squad Amid Man Utd Interest

ADC Slams Kaduna Police Over ‘Criminalisation’ Of Political Activities

‘His Reforms Brought Lasting Changes To Police Force’, Tinubu Mourns Ex-IGP Arase

‘Arase One Of Most Resourceful Retired IGPs’, Makinde Mourns

Kwara Gov’s Aides Empower APC Women, Youths

JUST-IN: BBNaija Star Phyna’s Sister, Ruth Otabor, Dies After Truck Accident

Tinubu Mourns Bishop Francis Okobo

Police Rescue 1 Kidnap Victim, Arrest 3 Suspects, Recover Arms Cache, N6m Cash In Akwa Ibom, Nasarawa

Kano Gov’t Loses N1bn Annually For Not Auctioning Used Items

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.