Chimara BygoldThere are expectations that activity in the money market will be slightly bullish as the market expects a liquidity boost from the maturing N54.30 billion worth of OMO bills.
Meanwhile, domestic investors are concentrating more on short-term lending to the Federal Government (FG) in anticipation of uncertainties and the outcome of the 2023 general election.
Indications to this emerged from results of the domestic borrowing activities of the Federal Government in the nine months period to September 2021, which showed an increased preference for short-term lending to the FG through its Nigeria Treasury Bills (NTBs) debt instruments.
However, the Federal Government, in an apparent reflection of its efforts to finance the Budget 2021 deficit of N5.62 trillion, increased borrowing from local investors by 18 per cent in nine months to N5.6 trillion as of September 30, 2021, from N4.6 trillion in the corresponding period in 2020.
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