The Central Bank of Nigeria (CBN) has introduced the Nigerian Overnight Financing Rate as a new standardised benchmark for the country’s money market, aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market. According to a circular on Friday signed by the Acting CBN’s Director of Corporate……
The Central Bank of Nigeria (CBN) has introduced the Nigerian Overnight Financing Rate as a new standardised benchmark for the country’s money market, aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market.
According to a circular on Friday signed by the Acting CBN’s Director of Corporate Communications, the newly introduced benchmark is in collaboration with the Financial Markets Dealers Association (FMDA).
According to the statement, the NOFR was developed to align Nigeria with global best practices in short-term interest
rate benchmarks.
The statement reads, “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.”
CBN affirms that the introduction of NOFR positions Nigeria alongside leading global benchmarks such as SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan).
CBN added that the move also complements African benchmarks such as JIBAR (South Africa).
The statement revealed that the benchmark was adopted by market participants following a stakeholder engagement session held on February 27, 2026, and subsequent regulatory approval, adding that NOFR is now in use, with the CBN serving as the benchmark administrator.
The APEX Bank reaffirms its commitment to ensuring governance, transparency, and regular publication of the rate.