The Central Bank of Nigeria (CBN) has introduced the Nigerian Overnight Financing Rate (NOFR), a new benchmark interest rate aimed at improving transparency, deepening the money market, and strengthening monetary policy effectiveness.

The apex bank announced the development in collaboration with the Financial Markets Dealers Association, describing it as a key reform to align Nigeria’s financial system with global standards for short-term interest rate benchmarks.

In a statement signed by Hakama Sidi Ali, the CBN said the new rate is expected to enhance price discovery and promote transparency in the pricing of money market instruments.