By Oluwakemi Kindness
The Central Bank of Nigeria (CBN) has announced the introduction of the Nigerian Overnight Financing Rate (NOFR).
The NOFR, in collaboration with the Financial Markets Dealers Association (FMDA), is a standardized benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.The Central Bank of Nigeria (CBN) has announced the introduction of the Nigerian Overnight Financing Rate (NOFR).
The NOFR, in collaboration with the Financial Markets Dealers Association (FMDA), is a standardized benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.
The apex bank, in a statement on Friday by its spokesperson, Hakama Sidi-Ali, said NOFR was developed to align Nigeria with global best practices in short-term interest rate benchmarks.
It is expected to improve price discovery and transparency, promote consistent pricing of money market instruments, enhance the effectiveness of monetary policy, support financial innovation, boost investor confidence, and strengthen risk management across the financial system.
The introduction of NOFR positions Nigeria alongside global benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan), as well as African benchmarks like JIBAR (South Africa).
The bank noted that following a stakeholder engagement session held on February 27, 2026, where market participants formally adopted the benchmark, and subsequent regulatory approval, NOFR is now in use, with the CBN serving as the benchmark administrator.
It added that the bank will ensure governance, transparency, and regular publication of the rate.
