The Central Bank of Nigeria (CBN) has introduced the Nigerian Overnight Financing Rate (NOFR), a new benchmark aimed at improving transparency and efficiency in the country’s money market. The initiative was developed in collaboration with the Financial Markets Dealers Association (FMDA).
In a statement signed by Acting Director of Corporate Communications, Hakama Sidi Ali, the apex bank said the NOFR will serve as a standardized reference rate for overnight lending, strengthening monetary policy transmission and deepening Nigeria’s financial system.
According to the CBN, the benchmark aligns with global best practices in short-term interest rate frameworks. It is expected to enhance price discovery, ensure consistent valuation of money market instruments, promote financial innovation, improve risk management, and boost investor confidence.
The NOFR places Nigeria alongside global benchmarks such as SOFR, SONIA, €STR, and TONA, as well as Africa’s Johannesburg Interbank Average Rate (JIBAR).
The bank noted that the development followed a stakeholder engagement held on February 27, 2026, where market participants adopted the rate before receiving regulatory approval for implementation. The move is also expected to further integrate Nigeria into global financial markets.
