CBN and FMDA Launch Nigerian Overnight Financial Rate

On Friday, the Central Bank of Nigeria (CBN) and the Financial Market Dealers Association (FMDA) announced the introduction of the Nigerian Overnight Financial Rate (NOFR) as a new benchmark for money market operations. This initiative aims to enhance transparency, strengthen monetary policy transmission, and deepen Nigeria's money market.

The NOFR is designed to align Nigeria with global best practices in short-term interest rate benchmarks, complementing international benchmarks such as SOFR in the United States, SONIA in the United Kingdom, and TONAR in Japan, as well as the African benchmark JIBAR in South Africa. The announcement was made by the CBN's Director of Corporate Communications, Mr.

Hakama Sidi Ali, who indicated that the NOFR would improve price discovery and promote consistent pricing of money market instruments. The formal adoption of the NOFR followed a stakeholder engagement session held on February 27, 2026, and is subject to regulatory approval.

The CBN will administer the benchmark, ensuring governance and transparency in its regular public rate.