Nigeria’s Overnight Funding Market Hits Record ₦97.45tn as Liquidity Remains Strong

Nigeria’s overnight funding market recorded its highest monthly trading volume since the introduction of the Nigerian Overnight Financing Rate (NOFR), with transactions rising to ₦97.45 trillion in June 2026, reflecting robust liquidity in the banking system.

Data released by the Central Bank of Nigeria (CBN) showed that total trading volume increased by 1.13 per cent from ₦96.36 trillion in May, after surging 42.58 per cent from ₦67.58 trillion recorded in April.

Despite the significant increase in market activity, the benchmark Nigerian Overnight Financing Rate (NOFR) remained largely unchanged at 22.00 per cent, closing at that level on 59 of the 62 trading days reviewed between April 13 and July 9, 2026.

The data indicates that banks executed higher volumes of overnight transactions without triggering an increase in short-term borrowing costs, pointing to stable liquidity conditions in the interbank market.

Average daily trading volume also strengthened, rising by 10.9 per cent to ₦5.35 trillion in May from ₦4.83 trillion in April, before easing slightly to about ₦4.64 trillion in June.

The NOFR recorded only marginal movements during the review period, rising to 22.04 per cent on April 15, 22.01 per cent on April 16, and 22.02 per cent on April 29, while remaining at 22.00 per cent on all other trading days.

The latest available figures for July 9 showed a traded volume of ₦5.02 trillion, with transaction rates ranging between 21.00 per cent and 22.00 per cent, while the benchmark rate remained unchanged at 22.00 per cent.

The highest single-day trading volume during the review period was recorded on May 6, when transactions reached ₦7.32 trillion. Other active sessions included May 19 (₦6.77 trillion), May 5 (₦6.67 trillion) and May 26 (₦6.57 trillion).

Although individual transaction rates fluctuated between 20 per cent and 32 per cent, these isolated trades had little impact on the weighted benchmark, underscoring the stability of short-term liquidity across the banking sector.

The CBN introduced the Nigerian Overnight Financing Rate (NOFR) as the country’s benchmark for unsecured overnight borrowing on April 17, 2026, following an agreement by market participants under the Financial Markets Dealers Association (FMDA).

The benchmark was formally launched on June 15, 2026, as part of broader reforms aimed at improving transparency, strengthening monetary policy transmission and aligning Nigeria’s financial markets with global reference rates.