Cardoso Launches Nigeria Overnight Financing Rate to Boost Confidence, Price Discovery, Market Stability

• Says global financial markets moving away from subjective, judgment-based benchmarks towards transaction-based reference rates that reflect actual market activity

•Philip Ikeazor describes initiative as milestone in financial market modernisation

James Emejo in Abuja

Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, yesterday launched the Nigeria Overnight Financing Rate (NOFR) to significantly deepen Foreign Exchange (FX) market stability, strengthen price discovery, and boost investor confidence.

The initiative, a collaborative effort between CBN, Financial Markets Dealers Association (FMDA), and European Bank for Reconstruction and Development, is aimed at anchoring the financial system on a more transparent and transaction-based benchmark.