Nigeria’s Overnight Financing Market up by 10.64% to N108.5trn, CBN reveals
The Central Bank of Nigeria (CBN) has revealed that the total traded volume at Nigeria’s Overnight Financing Market Rate (NOFR) increased to N108.5 trillion in September 2026, an increase of 10.64 per cent when compared to N98.08 trillion reported in August 2026
The NOFR is designed to serve as Nigeria’s overnight risk-free reference rate, reflecting the cost of secured overnight Naira funding among eligible financial institutions.
The N108.5 trillion reported by the CBN in September 2026 is the highest since the NOFR was introduced in April 2026.
According to CBN, the NOFR for May 2026 was at N96.36 trillion, up by 32.63 per cent from N72,7 trillion in April 2026. For the month of June 2026, the NOFR closed at N102.9 trillion, about 6.78 per cent increase from N96.36 trillion the CBN declared in May 2026.
However, the NOFR in July 2026 was at N104.9 trillion, a marginal increase of 1.91 per cent when compared to N102.9 trillion in June 2026.
An analysis of daily NORF market data between September 11 and 31 2026, shows that the NOFR moved from 22.00 per cent to 20 per cent amid ease in the Monetary Policy Rate (MPR) to 23 per cent. .
Despite the stronger market activity, the benchmark overnight funding rate was at 22 per cent from 16 times in September 2026 with minimum rate and maximum rate closing the month under review at 20 per cent and 22 per cent, respectively.
The data by CBN points to a notable increase in overnight market activity beginning in May, with volumes remaining elevated through June without triggering meaningful changes in funding costs, allowing banks and other market participants to execute larger volumes of overnight transactions without exerting upward pressure on borrowing rates.
As a robust and transaction-based benchmark, NOFR is aimed to support accurate pricing of financial instruments and promote standardization in financial contracts, deepen market development, and align Nigeria with global best practices in benchmark rate reforms.
The CBN had officially introduced the NOFR on April 17, 2026, when it announced the new benchmark in collaboration with the Financial Markets Dealers Association (FMDA) as the formal public launch ceremony was held June 15, 2026.
According to the CBN’s data, the overnight funding market recorded a sharp increase in trading activity in May 2026 and sustained the momentum through June 2026.
At the event, CBN Governor Olayemi Cardoso described NOFR as a key reform aimed at enhancing transparency, improving monetary policy transmission.
Cardoso had said, “The introduction of NOFR represents a significant reform that reinforces the Central Bank of Nigeria’s commitment to building a more resilient, efficient, and credible financial services sector.”
He explained that benchmark interest rates serve as the backbone of modern financial systems because they provide reference points for pricing financial instruments, managing liquidity and transmitting monetary policy decisions across the economy.
