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 enhancing the country's money market by improving transparency and strengthening monetary policy transmission. According to a statement from Hakama Sidi Ali, the CBN's Acting Director of Corporate Communications, this initiative is part of a collaborative effort with the Financial Market Dealers Association to deepen the financial system.

The NOFR aligns Nigeria with global standards for short-term interest rate benchmarks and is expected to improve price efficiency in the money market. The benchmark is designed to reflect the cost of overnight secured funds in the interbank market based on actual transactions.

It will be published daily at 10:00 AM the next business day and will serve as a reference point for pricing financial instruments across the system. The introduction of the NOFR follows stakeholder engagements held on February 27, 2026, and will complement existing benchmarks like SOFR in the U.S. and SONIA in the U.K.