Overnight Financing Market Fund Depreciated by 6.5% to N98.08tn in August   – THISDAYLIVE

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)  decline from N104.9  trillion total traded volume reported in July 2026. 

Analysts stated that the August 2026 decline in NOFR is best interpreted as a sign of easing pressure in the overnight money market as banks had less need to source funds overnight from the interbank market. 

The NOFR is the benchmark measure of unsecured overnight borrowing costs in the domestic money market and serves as a key indicator of short-term liquidity conditions.

As a robust and transaction-based benchmark, NOFR is aimed to support accurate pricing of financial instruments and promote standardization in financial contracts, deepen market development, and align Nigeria with global best practices in benchmark rate reforms. 

The reported N104.9 trillion in July 2026 makes it the highest overnight financing market funds volume since it was launched in April 2026 by the Olayemi Cardoso-led CBN governor.  

Analysis of CBN numbers showed that total traded volume increased 32.6 per cent MoM to N96.36 trillion in May 2926 from N72.66 trillion in April 2926, reflecting a significant pickup in overnight market transactions.

The CBN’s August 2026 data showed NOFR’s minimum rate stood around 20.50 per cent while the maximum rate closed the month under review at 27.00 per cent from  22.00 per cent it closed for July 2026.  

The data also revealed further that April 13 and July 31, 2026, shows that the NOFR remained virtually unchanged at 22.00 per cent throughout the period under review.

Amid  weaker market activity, the benchmark overnight funding rate barely moved, closing lowest at exactly…