September 8, 2025/InvestmentOne Report

The financial system was mostly liquid in August 2025, as analysis of activities at the discount window showed that banks were net lenders to the tune of NGN12.72trn in the review period (vs. NGN4.28trn in July 2025). A breakdown of the data revealed that banks deposited up to the sum of NGN15.62trn with the central bank through the Standing Deposit Facility (SDF), while only NGN2.90trn was borrowed by banks from the apex bank in the same period. Similarly, interbank lending rates moderated in August 2025, with the Open Buy Back and Overnight lending averaging 28.12% and 28.53%, lower than 28.95% and 29.42% in the previous month. This further emphasizes the optimal liquidity condition in the period under review. 

We expect market sentiment to remain largely mixed in September, as investors maintain cautious trading amid various factors including system liquidity, inflation expectations, primary market auction dynamics and monetary policy decisions by the central bank later in the month. Interbank liquidity is expected to remain relatively stable, albeit with occasional funding pressures from OMO sales by the central bank. Kindly find HERE, the full report, covering our analysis and considerations.