Banks borrowings from the Central Bank of Nigeria reduced by N1.56tn to N136.13bn in the fourth quarter of 2020 from N1.7tn in the third quarter.
Figures obtained from the Central Bank of Nigeria on ‘Standing facilities window operations’ in its fourth quarter report attributed this to excess liquidity in the banking system.
Part of the report read, “The bank’s discount window was open to banks to enable them square up their positions at the end of each business day.
“However, the requests for deposit placements were more predominant than lending due to the liquidity surfeit in banks.
“In addition, Intraday Liquidity Facility was accessible as a temporary credit, granted to deposit money banks to meet their funding needs during the operating hours of the CBN Inter-bank Funds Transfer System.
“Total standing deposit facility and standing lending facility stood at N2.14tn and N136.13bn respectively in the fourth quarter of 2020 in comparison with N1.88tn and N1.7tn in the third quarter.”
The report added that at the fixed income market, the Federal Government of Nigeria short- and long-term debt instruments, NTBs and FGN Bonds, were issued at the primary market.
NTBs of 91-, 182- and 364-day tenors amounting to N655.60bn, N2.71tn and N655.6bn, were offered, subscribed and allotted respectively, during the fourth quarter of 2020.
At the 91-day auction, total subscription and allotment were N341.42bn and N66.32bn, respectively, with bid rates ranging from 0.00 per cent to 2.22 per cent, while the stop rates ranged from 0.02 per cent to one per cent.
For the 182-day auction, total subscription and allotment were N255.75bn and N49.18bn respectively.
The bid rates ranged from 0.01 per cent to 2.98 per cent, while the stop rates ranged from 0.09 per cent one per cent.
At the 364-day tenor, total subscription and allotment were N2.11tn and N540.1bn respectively, with bid rates from 0.29 per cent to 25 per cent, while stop rates were from 0.15 to 3.20 per cent.
Altogether, the stop rates ranged from 0.02 per cent to 3.20 per cent.