Reference Banks are required to submit rates in answer to the NIBOR question:
At what rates could you borrow and lend funds, were you to do so by giving inter-bank bids and offers in a reasonable size just prior to 2:00 PM?
Reference Banks shall submit bid and offer quotes which will be sorted in ascending order. The top 25.00% and the bottom 25.00% will be cut off from both rankings (bids and offers), leaving only the middle 50.00% to be averaged and published as NIBOR. Quotes shall apply to unsecured inter-bank
transactions in a “reasonable size”.
“Reasonable size” for the purpose of NIBOR submissions is trade size between N2.00bn – N5.00bn.
Although Reference Banks are advised to use transaction data to anchor their submissions, having a polled rate is crucial to ensuring the continuous publication of such a systemic benchmark, even in times of low liquidity and when there are few transactions on which to base the benchmark.