Cardoso Announces New Nigerian Overnight Financing Rate

By Emma Ujah, Abuja Bureau Chief

Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), introduced the Nigerian Overnight Financing Rate (NOFR) today, emphasizing that financial systems must evolve to match shifting economic conditions.

The NOFR is a daily benchmark interest rate created by the CBN in partnership with the Financial Markets Dealers Association. It represents the real‑time cost of secured short‑term borrowing between financial institutions.

During the launch, Cardoso highlighted the importance of benchmark rates as the backbone of a modern financial system.

“The rate at which everyone agrees represents a true reflection of the price of money at a particular point in time is the backbone of any modern financial system,” he said.

He added that for a benchmark rate to achieve widespread acceptance, it must rest on a trusted, transparent, and well‑governed market framework, supported by administrative processes and methodologies that protect against manipulation.

Cardoso noted that financial systems cannot remain static; they must continuously adapt to evolving realities, seize emerging opportunities, and build stronger foundations for future growth.

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