The Central Bank of Nigeria (CBN) has launched the Nigerian Overnight Financing Rate (NOFR), a new benchmark interest rate aimed at enhancing transparency, efficiency, and investor confidence in the country’s financial markets.
The launch, which took place in Abuja on Tueaday, marks a significant milestone in the apex bank’s ongoing financial sector reforms designed to strengthen market integrity and support sustainable economic growth.
Speaking at the unveiling, the Governor of the , , described NOFR as a transparent, transaction-based benchmark that accurately reflects the actual cost of overnight funding in Nigeria’s money market.
According to Cardoso, the introduction of NOFR will improve price discovery, enhance risk management practices, and provide a more reliable reference rate for financial transactions across the banking and investment sectors.
He noted that the benchmark is expected to boost investor confidence by providing market participants with credible and transparent data for decision-making, while also aligning Nigeria’s financial market infrastructure with international best practices.
The CBN governor emphasized that the initiative forms part of broader efforts to deepen the nation’s financial markets and create a more resilient and efficient financial system capable of supporting long-term economic development.
The NOFR was developed through a collaborative effort between the and the CBN, with technical support from the .
Market analysts say the benchmark rate will provide greater transparency in short-term funding markets, improve the pricing of financial instruments, and strengthen monetary policy transmission across the economy.
The launch underscores the CBN’s commitment to implementing reforms aimed at modernizing Nigeria’s financial sector, enhancing market stability, and attracting both domestic and foreign investment.

