Yemisi Izuora The Manufacturers
The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), has 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 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.
The Bank will ensure governance, transparency, and regular publication of the rate.