Investors drive overnight funding market to record N97.45trn in June
Nigeria’s overnight funding market hit a new milestone in June as investors pushed total traded volume to ₦97.45 trillion, the highest since the benchmark was introduced.
The figure represents a 1.13 per cent increase from May’s ₦96.36 trillion, which itself had surged 42.58 per cent from April’s ₦67.58 trillion.
Despite the sharp rise in activity, the Nigerian Overnight Financing Rate (NOFR) held steady at 22.00 per cent across 59 of the 62 trading days between April 13 and July 9, according to Central Bank of Nigeria (CBN) data.
The stability suggests that investors were able to execute larger volumes of overnight transactions without exerting upward pressure on borrowing costs.
Average daily market volume rose 10.9 per cent to ₦5.35 trillion in May, up from ₦4.83 trillion in April, before moderating slightly to ₦4.64 trillion in June. The busiest session came on May 6, when investors traded ₦7.32 trillion, followed by May 19 at ₦6.77 trillion. June’s peak was ₦5.61 trillion on June 3, while July 3 posted the lowest daily volume at ₦2.99 trillion.
Transaction rates varied widely across individual trades, ranging from 20.00 per cent to 32.00 per cent, but the benchmark NOFR remained anchored at 22.00 per cent. This highlights stable liquidity conditions in the interbank market, with isolated higher-cost trades having little influence on the weighted benchmark.
For investors, the surge in volumes reflects stronger participation and confidence in the overnight market, while the steady rate underscores a balanced liquidity environment. July’s cumulative volume of ₦28.03 trillion already points to sustained activity, though full-month figures will be released later.
The NOFR was formally launched by the CBN on June 15, 2026, as part of reforms to enhance transparency and align Nigeria’s money markets with global benchmarks such as SOFR in the US, SONIA in the UK, €STR in the Eurozone, and TONA in Japan. Governor Olayemi Cardoso described the benchmark as a key tool for improving monetary policy transmission and investor confidence.
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