The Central Bank of Nigeria (CBN), in collaboration with the Financial Markets Dealers Association (FMDA), on Friday, announced the introduction of the Nigerian Overnight Financing Rate (NOFR), a new benchmark for the country’s money market aimed at improving transparency, strengthening monetary policy transmission, and deepening financial market operations.

This was dated in a memo issued by the director of corporate communications, Hakama Sidi Ali. 

The memo reads, “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. NOR was developed to align Nigeria with global best practices in short-term interest rate benchmarks. 

The apex bank said the new benchmark is designed to align Nigeria with global best practices in short-term interest rate benchmarks and enhance the pricing of money market instruments. 

According to the CBN, NOFR will improve price discovery, promote consistent market pricing, and support better risk management across the financial system

“The introduction of NOR positions Nigeria alongside leading global benchmarks such as SOR (United States), SONIA (United Kingdom), €STR (Eurozone), and TONA (Japan). It also complements African benchmarks such as JIBAR (South Africa),” Mrs Ali said.

Mrs Ali further noted that a stakeholder engagement session was held on February 27,2026, where market participants formally adopted the benchmark, and subsequent regulatory approval, NOR is now in use, with the CBN serving as the benchmark administrator.

She further added the bank will ensure governance, transparency, and regular publication of the rate.