Nigerian interbank lending rates climbed to 10.58 percent on average this week from 9.16 percent last week after the central bank lifted its benchmark interest rate, traders said on Friday.

The central bank raised the rate to 8.0 percent from 7.5 percent on Tuesday, citing a need to rein in inflation and control surging liquidity that has led to mounting foreign exchange demand and piled pressure on the naira currency.

The secured open buy back (OBB) rose to 10 percent from 8.75 percent last week, 200 basis points above the benchmark rate and 4.0 percentage points over the standing deposit facility (SDF) rate.

Overnight placement jumped in tandem to 10.75 percent from 9.25 percent, while call money closed at 11.0 percent against 9.50 percent last week.

The market opened on Friday with a balance of 208 billion naira as a result of an inflow after some government agencies paid staff, but the impact of the interest rate hike still pushed up lending rates among banks.

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"The market reacted to the increase in both the monetary policy rate and the cash reserve requirement by the central bank this week by marking up all tenor rates," one trader said.

As well as lifting interest rates, the central bank on Tuesday raised lenders' cash reserve requirements to 4 percent of deposits from 2 percent.

Dealers said the cost of funds should edge up next week as the market digests the rate hike and liquidity tightens.

"We expect rates to inch up because we are not seeing any inflows coming in next week, while liquidity will become tighter," another trader said.

The indicative rates for the Nigeria interbank offered rate (NIBOR) rose in line with the short-term market, with seven-day funds climbing to 11.24 percent from 10.16 percent last week.

The 30-day fund jumped to 12.41 percent against 11.45 percent, the 60-day closed at 12.87 percent from 11.95, while the 90-day closed at 13.28 percent from 12.54 last week.