Nigeria interbank rates fall on excess liquidity

Nigerian interbank lending rates fell 1.5 percentage points on Friday to 9.25 percent, compared with 10.75 percent last week, as treasury bills matured and cash calls went out to joint oil- production partners, increasing market liquidity.
Traders said about 234 billion naira ($1.25 billion) in matured treasury bills was retired by the central bank on Thursday and an undisclosed amount was paid to oil-production joint venture partners.
Banks' cash balance with the central bank rose to 393 billion naira on Thursday from 377 billion naira last Friday. Secured Open Buy Backs closed the week at 9 percent compared with 10.5 percent last Friday, 4 percentage points below the central bank's benchmark rate of 13 percent.
Overnight placement also dropped to 10 percent from 11 percent last week, traders said.
Traders said lending rates should remain stable next week unless the central bank increases treasury bill sale.
The central bank left its benchmark interest rate at 13 percent for the second meeting in a row last week.