CBN, financial markets dealers introduce new money market benchmark

The Central Bank of Nigeria and Financial Markets Dealers Associations have introduced the Nigerian Overnight Financing Rate (NFOR), as the new money market benchmark to ensure consistent pricing of money market instruments. The apex bank disclosed this Friday in a circular signed by its Acting Director, Corporate Communication, Mrs. Hakama Ali. “The Central Bank of […]

The Central Bank of Nigeria and Financial Markets Dealers Associations have introduced the Nigerian Overnight Financing Rate (NFOR), as the new money market benchmark to ensure consistent pricing of money market instruments.

The apex bank disclosed this Friday in a circular signed by its Acting Director, Corporate Communication, Mrs. Hakama Ali.

“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,” the circular read.

CBN further stated that NOFR was developed to align Nigeria with global best practices in short-term interest rate benchmarks.

“It is expected to improve price discovery and transparency while promoting consistent pricing of money market instruments.

“It will enhance the effectiveness of monetary policy, support financial innovation, boost investor confidence, and strengthen risk management across the financial system,” CBN added.