CBN Launches Nigerian Overnight Financing Rate (NOFR) to Reform Money Market
The launch was officially announced in Abuja by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, who described the development as a significant reform to boost investor confidence and deepen financial market operations.
The Central Bank of Nigeria (CBN) has launched a new benchmark known as the Nigerian Overnight Financing Rate (NOFR), in a move aimed at strengthening transparency and efficiency in the country’s financial markets.
According to the bank, NOFR is a transaction-based reference rate designed to accurately reflect the true cost of overnight borrowing in Nigeria’s money market. It is expected to improve price discovery, enhance market integrity, and support more effective risk management across the financial sector.
The launch was officially announced in Abuja by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, who described the development as a significant reform to boost investor confidence and deepen financial market operations.
The benchmark was developed in collaboration with the Financial Markets Dealers Association (FMDA) and supported by the European Bank for Reconstruction and Development (EBRD). Stakeholders say the initiative will help modernize Nigeria’s money market infrastructure and align it with global best practices.
The Central Bank of Nigeria said the introduction of NOFR represents a key step in its broader agenda to strengthen financial system stability and support sustainable economic growth across Nigeria
