Interbank Rates Fall to Average of 0.75% on Excess Cash

Nigeria's interbank lending rates fell further to an average of 0.75 percent on Friday, down from 1 percent the previous day and from 3 percent a week ago, after the central bank made a large cash injection into the banking system.

The cost of funds fell to 1 percent for overnight lending and 0.5 percent for the secured Open Buy Back (OBB) on Friday after additional cash in banks' deposits with the central bank were refunded on Friday.

Banking system credit opened at 1.20 trillion naira ($6.03 billion) on Friday, compared with 1.05 trillion on Thursday and 189 billion naira last week Friday.

The regulator has been injecting cash into the banking system in a bid to ease liquidity and stave off recession in Africa's biggest economy, which has suffered as oil prices fell.