CBN launches NOFR to boost money market transparency, global alignment
CBN Building
Abdullateef Fowewe
The Central Bank of Nigeria (CBN) has introduced the Nigerian Overnight Financing Rate (NOFR), a new standardised benchmark designed to modernise the country’s financial markets.
In a statement issued Friday by Hakama Sidi Ali, Acting Director of Corporate Communications, the CBN announced the rollout in partnership with the Financial Markets Dealers Association (FMDA).
“The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), today 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,” the statement read.
NOFR aligns Nigeria with international standards, mirroring global rates like SOFR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan), while complementing African benchmarks such as South Africa’s JIBAR.
It follows a stakeholder session on February 27, 2026, where market participants endorsed it, paving the way for regulatory approval.
The benchmark promises broader impacts, as the statement noted, “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 CBN will act as administrator, committing to “ensure governance, transparency, and regular publication of the rate.”
NOFR is now operational, marking a key step in Nigeria’s financial evolution.
