Nigeria's Overnight Financing Market Hits Record N104.9 Trillion in July 2026

Nigeria's overnight financing market has achieved an unprecedented monthly trading volume of N104.9 trillion in July 2026. This record figure signifies a sustained and sharp expansion in market activity since the Central Bank of Nigeria (CBN) introduced the Nigerian Overnight Financing Rate (NOFR) in April.

Data released by the CBN reveals a consistent upward trend in trading volumes. The July figure represents a 1.9% increase from the N102.9 trillion recorded in June, marking the highest monthly volume since the benchmark's inception. Activity accelerated significantly from May, with total traded volume rising by 32.6% to N96.36 trillion in May, compared to N72.66 trillion in April. This momentum continued into June and July, underscoring increased transactions among financial institutions.

Despite the substantial rise in transaction volumes, the NOFR benchmark rate has remained remarkably stable, hovering around 22 percent. Analysis of daily market data from April 13 to July 31, 2026, shows that the maximum NOFR was exactly 22 percent on 12 of the 31 trading days. This stability suggests the market effectively absorbed the increased overnight financing activity without significant upward pressure on borrowing rates, indicating that banks and other participants could execute larger transactions without disrupting short-term funding conditions.

The NOFR was formally introduced on April 17, 2026, in collaboration with the Financial Markets Dealers Association (FMDA), with an official public launch on June 15. CBN Governor Olayemi Cardoso described the benchmark as a critical financial market reform designed to bolster transparency, enhance monetary policy transmission, and align Nigeria's money market with global benchmarks like the U.S. SOFR, the UK's SONIA, the Eurozone's €STR, and Japan's TONA. Cardoso stated that the NOFR reinforces the CBN's commitment to a more resilient, efficient, and credible financial services sector.

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The introduction of NOFR represents a significant reform that reinforces the Central Bank of Nigeria’s commitment to building a more resilient, efficient and credible financial services sector.