Overnight Financing Market Fund Depreciated by 6.5% to N98.08tn in August
Kayode Tokede The Central Bank of Nigeria (CBN) has revealed that total overnight financing market Rate (NOFR) closed August 2026 at N98.08 trillion, representing about 6.5 per cent Month-on-Month (MoM)
The Central Bank of Nigeria (CBN) reported that the total overnight financing market Rate (NOFR) closed at N98.08 trillion in August 2026, marking a 6.5 percent month-on-month decline compared to the N104.9 trillion traded volume in July 2026. Analysts interpreted the decrease as a sign of easing pressure in the overnight money market, as banks required less funding from the interbank market.
The NOFR serves as a benchmark for unsecured overnight borrowing costs and provides insights into short-term liquidity conditions. The benchmark is crucial for accurately pricing financial instruments and promoting standardization in financial contracts. The CBN introduced the NOFR in April 2026, and the data shows that NOFR's minimum rate stood at 20.50 percent while the maximum rate closed at 27.00 percent.
The data also revealed that April 13 and July 31, 2026, saw NOFR remain virtually unchanged at 22.00 percent throughout the period under review.
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