CBN Reports 6.5% Decline in Overnight Financing Market
The Central Bank of Nigeria (CBN) reported that the total overnight financing market rate (NOFR) closed at N98.08 trillion in August 2026, reflecting a 6.5% Month-on-Month decline from N104.9 trillion in July 2026. This decline suggests reduced pressure on banks to source overnight funds from the interbank market.
The NOFR serves as a benchmark for unsecured overnight borrowing costs and is crucial for assessing short-term liquidity conditions. The CBN's data indicated that the minimum NOFR rate was around 20.50%, while the maximum rate reached 27.00%, up from 22.00% in July 2026.
The NOFR was officially introduced on April 17, 2026, in collaboration with the Financial Markets Dealers Association, with a public launch on June 15, 2026, in Abuja. CBN Governor Olayemi Cardoso emphasized that the NOFR reform aims to enhance transparency and improve monetary policy transmission, aligning Nigeria's money markets with global standards.
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