By Abiodun Folarin
WorldStage– Nigerian Overnight Financing (NOF) rate remained unchanged at 22.00 per cent on August 3, 2026, even as activity in the overnight money market weakened, with transaction volume declining sharply to N3.14 million from N4.98 million recorded in the previous trading session.
The Central Bank of Nigeria (CBN) latest data from the overnight market showed that the NOF rate closed at 22.00 per cent, with transactions executed within a range of 22.00 per cent to 24.00 per cent, resulting in a daily variation of 2.00 percentage points.
The decline in market turnover points to softer liquidity conditions at the start of the new trading week, despite stable overnight funding costs.
In the previous trading session on July 31, the NOF rate also closed at 22.00 per cent, although trades were executed within a wider range of 19.50 per cent to 22.00 per cent, reflecting a daily variation of 2.50 percentage points.
The Nigerian Overnight Financing Rate (NOFR), introduced as Nigeria’s overnight risk-free reference rate, is designed to reflect the cost of overnight naira funding among eligible financial institutions. As a transaction-based benchmark, it is expected to improve the pricing of financial instruments, promote standardisation in financial contracts, deepen the domestic financial market, and align Nigeria’s benchmark rate framework with global best practices.
The NOF rate remains a key indicator of short-term naira funding costs and liquidity conditions in the banking system, with market participants closely watching its movements for signals on interbank liquidity and the transmission of monetary policy.
