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The Central Bank of Nigeria on Friday unveiled the Nigerian Overnight Financing Rate (NOFR) as a new benchmark for the country’s money market, a move aimed at boosting transparency and improving the effectiveness of monetary policy.

The announcement was made in a statement by the bank’s Acting Director of Corporate Communications, Hakama Sidi-Ali, who noted that the initiative was developed in partnership with the Financial Markets Dealers Association to strengthen Nigeria’s financial system.

According to the apex bank, the new benchmark is designed to bring Nigeria in line with global standards for short-term interest rates, while enhancing price discovery and ensuring more consistent pricing across money market instruments.

The CBN explained that NOFR is expected to improve monetary policy transmission, encourage financial innovation, and boost investor confidence, while also reinforcing risk management practices within the financial system.

With the introduction of NOFR, Nigeria joins other economies that use similar benchmarks, such as SOFR in the United States, SONIA in the United Kingdom, €STR in the Eurozone, TONA in Japan, and JIBAR in South Africa.

The bank disclosed that the rate followed a stakeholder engagement held on February 27, 2026, where market participants adopted the framework before receiving regulatory approval. NOFR is now operational, with the CBN serving as its administrator and responsible for ensuring transparency, governance, and regular publication.

Further details provided in an FAQ document show that NOFR is a risk-free benchmark reflecting the cost of overnight secured lending in the interbank market. Unlike estimates, it is based strictly on actual transactions, improving accuracy and credibility.

The rate is published daily at 10:00 a.m. on the next business day and applies only to naira-denominated overnight secured interbank transactions that meet specified criteria. It is calculated using a volume-weighted trimmed mean approach to remove outliers and ensure reliability.

Where there is insufficient transaction data, the previous day’s rate will be retained and clearly disclosed to maintain consistency.

The CBN clarified that NOFR is not a replacement for key monetary policy tools such as the Monetary Policy Rate but will serve as a reference for pricing financial instruments, contracts, and some corporate loans.

For investors, the benchmark is expected to improve valuation, pricing, and risk management of naira assets, thereby deepening activity in the domestic money market.

While retail customers may not see immediate changes in loan or savings rates, the bank noted that increased transparency from the new system should strengthen overall confidence in Nigeria’s financial sector.

On governance, the CBN stated that any adjustments to the rate would only occur in cases of significant errors and would be fully disclosed, adding that the methodology will be reviewed at least once a year to keep it aligned with market realities.

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The Nigerian equities market sustained its bullish momentum on Thursday, delivering a fresh massive gains of N1.663 trillion to investors as market capitalization surged beyond the N136 trillion mark.

At the close of trading, total market value rose by 1.23 percent to N136.435 trillion, up from N134.772 trillion recorded at the start of the session.

In the same vein, the All-Share Index (ASI) advanced by 2,583.61 points, representing a 1.23 percent increase, to settle at 211,901.02, compared to 209,317.41 in the previous trading day.

The market’s Year-To-Date (YTD) return strengthened further to 36.17 percent, while sentiment remained positive as 45 stocks posted gains against 20 decliners.

Leading the gainers’ table were Trans-Nationwide Express and Guinea Insurance, both appreciating by 10 per cent to close at N5.50 and N1.21 per share, respectively. Aradel rose by 9.99 percent to N1,547.50; Ecobank Transnational gained 9.97 percent to close at N61.20, while Daar Communications climbed 9.93 percent to N1.66 per share.

On the losers’ side, Ikeja Hotel topped the chart with a 9.73 per cent decline to N33.40. WAPIC followed with an 8.77 per cent drop to N2.60, while CAP shed 8.61 per cent to close at N95 per share. International Energy Insurance and McNichols also recorded losses of 8.18 per cent and 5.82 per cent, respectively.

Trading activity, however, slowed during the session. Total volume traded declined by 17.19 percent to 584.96 million shares valued at N34.76 billion across 45,559 deals.

Zenith Bank emerged as the most actively traded stock, accounting for 61.74 million shares worth N7.60 billion, representing 10.55 per cent and 21.86 per cent of total volume and value, respectively.

The latest performance extends the market’s winning streak to four consecutive sessions, following a strong N2.28 trillion gain recorded on Wednesday.

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The Nigeria Deposit Insurance Corporation (NDIC) has commenced the final phase of winding down 89 defunct Microfinance Banks (MFBs) and Primary Mortgage Banks (PMBs) across the country following their acquisition by new operators under its resolution framework, it emerged on Wednesday.

The Corporation said the move follows the earlier revocation of licences by the Central Bank of Nigeria (CBN) in May 2023, which affected 179 microfinance banks and four primary mortgage banks.

Under the Purchase and Assumption (P&A) model, according to Hawwau Gambo, the Head of Communication and Public Affairs, 89 new institutions were subsequently licensed to take over the assets and liabilities of the failed banks and have since commenced operations under new identities.

NDIC, acting as liquidator, the statement noted, will now approach various divisions of the Federal High Court to obtain formal orders dissolving the defunct entities and discharging the Corporation from its liquidation responsibilities, in line with its enabling law.

A breakdown of the affected institutions shows that Lagos accounts for the highest number, with 27 banks undergoing the process.

This is followed by Osun with seven, Anambra with six, the Federal Capital Territory (FCT) with five, while Akwa Ibom, Ogun, and Adamawa recorded four each.

Oyo, Kaduna, Edo, and Niger recorded three each.

Other states affected include Benue, Delta, Imo, and Ondo, with two each, while Abia, Ekiti, Enugu, Rivers, Plateau, Nasarawa, Kano, Kwara, Jigawa, and Katsina recorded one each.

The Corporation said the exercise aims to bring closure to the resolution process while ensuring depositors’ interests remain protected, and the financial system remains stable.

The NDIC added that the transition under the P&A arrangement has allowed continuity of banking services in affected locations, as the acquiring institutions have fully taken over operations of the defunct banks.