Overnight lending rate falls 825 bps from previous day

Nigeria’s overnight lending rate fell to 9.75 percent on Friday, down 825 basis points from the previous day’s close after government monthly budget disbursals flowed into the banking system, dealers said.

Overnight lending rate spiked to 18 percent on Thursday as liquidity dried up in the system after pension funds snapped up bonds in anticipation of a rate decision by the central bank on Tuesday.

Dealers said the government disbursed around 200 billion naira ($1.13 billion) in allocations on Friday, which lowered the cost of borrowing among banks.

Source : BusinessDay

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