By Abiodun Folarin
WorldStage— The Central Bank of Nigeria (CBN), latest Nigerian Overnight Financing Rate (NOFR), reveals that the volume of overnight transactions increased to ₦5.219 trillion, with the benchmark rate closing at 25.43 per cent on Friday, July 24, 2026.
The apex bank in it latest data showed that eligible overnight transactions worth ₦5.219 trillion were executed during the trading session, while the weighted average rate settled at 25.43 per cent.
NOFR data, by the bank also indicated that overnight funding rates ranged between a minimum of 22.00 per cent and a maximum of 27.00 per cent, reflecting prevailing liquidity conditions in the Nigerian interbank market.
The Nigerian Overnight Financing Rate launched on June 2, 2025 in collaboration with the financial market dealers assocation (FMDA), is the country’s official transaction-based overnight reference rate, designed to provide a transparent and reliable benchmark for unsecured overnight naira lending among eligible financial institutions.
Introduced as part of the CBN’s financial market reforms, the NOFR is expected to strengthen monetary policy transmission, improve transparency in money market pricing, enhance risk management and support the development of financial products linked to a credible benchmark interest rate.
The benchmark, which is published on every business day, is derived from actual overnight funding transactions rather than indicative quotes, aligning Nigeria’s financial markets with international best practices for reference rate reforms.
Market analysts monitor the NOFR closely as it provides an indication of short-term liquidity conditions and the cost of overnight funding in the banking system, serving as an important reference for financial institutions, investors and other market participants.
