The introduction of Nigeria’s Overnight Financing Rate (NOFR) marks a major shift towards transaction-based benchmark pricing in the Nigerian money market. This article explores NOFR’s implications for banks, financial contracts and risk management, while examining the operational challenges of market adoption and its potential to strengthen transparency, investor confidence and financial stability.
Authors:
Blessing Udoh, Solicitor, blessing@detailsolicitors.com
Olawunmi Alade, Partner, olawunmi@detailsolicitors.com