The Nigeria’s Overnight Financing Rate (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. 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. 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. He said the benchmark was designed as a transaction-based overnight secured interbank financing rate that reflects the true cost of overnight funding in Nigeria’s money market. He added that the new framework would strengthen confidence in Nigeria’s financial markets and support efforts to deepen market activities.