CBN Introduces Nigerian Overnight Financing Rate as New Benchmark
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‎The Central Bank of Nigeria (CBN), in partnership with the Financial Markets Dealers Association (FMDA), has unveiled the Nigerian Overnight Financing Rate (NOFR) as the country’s new money market benchmark.
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‎The NOFR is designed to enhance transparency, strengthen monetary policy transmission, and deepen Nigeria’s financial markets.

According to the CBN, the benchmark will improve price discovery, support financial innovation, and boost investor confidence.
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‎The introduction of NOFR aligns Nigeria with global best practices, placing it alongside leading benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan), while complementing African standards like JIBAR (South Africa).
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‎Following stakeholder adoption in February 2026 and subsequent regulatory approval, the NOFR is now operational, with the CBN serving as its administrator. The Bank pledged to ensure governance, transparency, and regular publication of the rate.
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‎This development marks a significant step in modernizing Nigeria’s financial infrastructure and strengthening the resilience of its monetary system.