The nation’s interbank lending rates rose to 7.5 per cent on average at the short-end of the money market this week from 5.76 per cent last week, driven by the central bank reducing naira liquidity, traders said.
The secured Open Buy Back (OBB) climbed to 7.0 per cent from 5.5 percent, overnight rose to 7.5 per cent from 5.8 percent, while call money was up at 8.0 percent from 6.0 per cent.

"The market became tight after the central bank mopped-up about N100 billion ($823.04 million) through the sale of short-tenor treasury bills and this led to interest rates hike," one banker said.
Rates eased last week with the release of monthly budgetary allocations to government agencies, but the central bank then raised treasury bills sale to retail banks to reduce excess funds in the system and curb inflation.

Dealers said rates could ease next week on the expected inflows in repayments on maturing treasury bills and short-term deposits by some banks with the central bank.
Lending rates at the long-end of the market, typified by the Nigerian Inter-Bank Offered Rates (NIBOR), also rose due to the liquidity crunch.

The 7-day tenor climbed to 9.25 per cent from 7.25 per cent, 30-day fund rose to 12.60 per cent from 11.41 per cent, 60-day tenor traded up at 12.66 per cent from 12.58 per cent, while the 90-day fund closed at 12.79 per cent compared to 12.50 per cent.