RismadarVoice Reporters, June 16, 2026
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has unveiled the Nigerian Overnight Financing Rate (NOFR), a new benchmark designed to improve transparency and efficiency in the country’s financial markets.
The announcement was made in Abuja during the official launch of the rate, which is expected to serve as a key reference point for pricing loans and deposits within the Nigerian money market.
Developed in collaboration with the Financial Markets Dealers Association (FMDA), the NOFR reflects the real-time cost of secured, short-term borrowing between financial institutions. It is based on actual market transactions rather than estimates or subjective inputs.
Cardoso described the initiative as a major step in modernising Nigeria’s financial system, noting that credible benchmark rates must be grounded in transparent and well-governed market structures that are resistant to manipulation.
According to him, financial systems must continuously evolve to reflect changing economic conditions and global best practices, particularly in the way interest rate benchmarks are determined.
He explained that the new framework was developed with technical support from the European Bank for Reconstruction and Development (EBRD), positioning NOFR as a transaction-based overnight rate that accurately captures the cost of short-term funding in the interbank market.
Cardoso further stated that the introduction of NOFR would enhance market integrity by reducing reliance on estimates, improving price discovery, and strengthening overall confidence in Nigeria’s financial system.
He described the reform as part of a broader effort to align Nigeria with international standards in benchmark rate administration and to deepen the country’s financial markets.
The CBN governor added that the new rate would ultimately provide a more reliable foundation for transparent pricing of financial products, including loans and deposits, across the banking sector.
