The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), have announced the introduction of the Nigerian Overnight Financing Rate (NOFR), a standardized benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.
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 while promoting consistent pricing of money market instruments. It will 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 leading global benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan). It also complements African benchmarks such as JIBAR (South Africa).
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.
Confirming the development, Hakama Sidi Ali, Ag. Director, Corporate Communications said the Bank will ensure governance, transparency, and regular publication of the rate.
NOFR is Nigeria’s official overnight risk‐free interest rate benchmark. It reflects the cost of overnight secured funding in the Nigerian interbank market and is based on actual market transactions, not estimates. It is a market‐based reference rate and is distinct from CBN monetary policy rates such as the Monetary Policy Rate (MPR) and is published daily at 10:00 a.m. Lagos time on the business day following the fixing day.
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