By Emma Ujah, Abuja Bureau Chief

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has launched the Nigerian Overnight Financing Rate (NOFR), saying financial systems must continue to evolve to meet changing economic realities.

The NOFR is a daily benchmark interest rate introduced by the CBN in collaboration with the Financial Markets Dealers Association. It reflects the actual, real-time cost of secured short-term borrowing between financial institutions.

Speaking at the launch, Cardoso described benchmark interest rates as the foundation 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 noted that for a benchmark rate to gain broad acceptance, it must be built on a trusted, transparent and well-governed financial market framework, supported by administrative processes and methodologies that guard against manipulation.

According to the CBN governor, financial systems cannot remain static and must continuously adapt to changing realities, respond to emerging opportunities and create stronger foundations for future growth.