By Abigail David
The Central Bank of Nigeria (CBN) has launched the Nigerian Overnight Financing Rate (NOFR), a new transaction-based benchmark interest rate aimed at improving transparency, strengthening monetary policy transmission and deepening the country’s financial markets.
Speaking at the launch in Abuja on Monday, CBN Governor Olayemi Cardoso described the initiative as a major reform designed to align Nigeria’s financial system with global best practices and enhance confidence among investors and market participants.
According to Cardoso, NOFR is a transaction-based overnight secured interbank financing rate that reflects the actual cost of overnight funding in the Nigerian money market.
“The introduction of NOFR represents a significant reform that reinforces the Central Bank of Nigeria’s commitment to building a more resilient, efficient and credible financial services sector,” he said.
He explained that the benchmark was developed in collaboration with the Financial Markets Dealers Association, with technical support from the European Bank for Reconstruction and Development, to provide a more transparent and reliable reference rate for pricing financial instruments and managing liquidity.
Cardoso noted that transaction-based benchmarks reduce the risk of manipulation, improve price discovery and enhance market integrity, ultimately supporting the growth and credibility of Nigeria’s financial markets.
He added that the new benchmark would strengthen monetary policy transmission, improve the pricing of loans and wholesale deposits, support the development of financial products and boost domestic and international investor confidence.
Also speaking at the event, Deputy Governor for Economic Policy, Philip Ikeazor, described the launch as a major milestone in the evolution of Nigeria’s financial markets, saying it reflects the country’s commitment to building stronger financial infrastructure.
Representing Access Bank Managing Director Roosevelt Ogbonna, the bank’s Group Head of Treasury, David Enilolobo, said the initiative was a structural reform that would improve market credibility and attract greater investment into the financial sector.
The CBN had earlier announced the introduction of the Nigerian Overnight Financing Rate in April 2026 as part of ongoing efforts to enhance transparency and efficiency in Nigeria’s money market.
