CBN Launches Nigerian Overnight Financing Rate for Markets

The Central Bank of Nigeria (CBN) announced the introduction of the Nigerian Overnight Financing Rate (NOFR) on Friday, aimed at deepening the country's money market. This new benchmark is designed to improve transparency and strengthen monetary policy transmission.

According to a press statement from CBN's Acting Director of Corporate Communications, Hakama Sidi Ali, the NOFR aligns Nigeria with global standards for short-term interest rate benchmarks. The CBN expects this development to enhance price efficiency in the money market and promote consistent pricing of financial instruments.

The NOFR will serve as a risk-free benchmark reflecting the cost of overnight secured funds in the interbank market, based strictly on actual transactions. The benchmark will be published daily at 10:00 AM the next business day.

The introduction of the NOFR follows stakeholder engagement held on February 27, 2026, and is intended to complement existing benchmarks such as SOFR in the United States and SONIA in the United Kingdom.