Nigeria's Overnight Financing Market Hits N104.9tn in July

In July 2026, Nigeria's overnight financing market recorded a historic trading volume of N104.9 trillion, reflecting a 1.9% increase from June's N102.9 trillion. This surge follows the introduction of the Nigerian Overnight Financing Rate (NOFR) by the Central Bank of Nigeria (CBN) on April 17, 2026, in collaboration with the Financial Markets Dealers Association, with a public launch on June 15.

The NOFR serves as a benchmark for overnight borrowing costs and has contributed to a significant rise in market activity, with total traded volume increasing by 32.6% from N72.66 trillion in April to N96.36 trillion in May, and further to N102.9 trillion in June. Despite this increase in transaction volumes, the benchmark rate remained stable at around 22%, indicating that the market effectively managed higher financing activity without raising borrowing costs.

CBN Governor Olayemi Cardoso emphasized the NOFR's role in enhancing transparency and aligning Nigeria's money market with international standards.