The Central Bank of Nigeria, CBN, and the Federal Ministry of Finance have signed a Memorandum of Understanding to strengthen coordination between monetary and fiscal authorities in managing the nation’s economy.
The MoU was signed on Monday at the CBN headquarters in Abuja by the CBN Governor, Olayemi Cardoso, and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
The agreement is aimed at deepening collaboration and ensuring coherence in the formulation and implementation of monetary and fiscal policies.
Under the MoU, both institutions will engage in regular consultations, information sharing and joint policy assessments. The areas of collaboration include government cash management, borrowing plans, liquidity forecasting, foreign exchange flows and broader macroeconomic conditions.
Speaking shortly after the signing, CBN Governor Olayemi Cardoso said the MoU would provide a clearer and more structured framework for the long-standing relationship between the apex bank and the Ministry of Finance. Cardoso said the framework has become even more critical as the CBN transitions towards an inflation-targeting regime.
He explained that effective coordination between fiscal and monetary authorities is essential for achieving price stability, exchange rate stability and sustainable economic growth. According to the CBN Governor, the agreement will also enhance transparency and improve planning around government finances and market operations.
In his remarks, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the MoU would strengthen policy coordination while preserving the operational independence of the Central Bank.
Oyedele noted that fiscal and monetary policy variables such as public spending, borrowing, interest rates and exchange rates are interlinked and require deliberate coordination. He said without proper alignment, conflicting policies could undermine efforts to stabilise the economy and attract investment.
The Minister added that the arrangement would enable both institutions to anticipate risks and jointly address emerging economic challenges. He reaffirmed the Federal Government’s commitment to fiscal discipline and ongoing reforms to support macroeconomic stability.
Stakeholders have described the MoU as a positive signal of policy coherence, which is expected to boost investor confidence and support the Federal Government’s economic reform agenda.
The signing comes at a time when Nigeria is grappling with persistent inflationary pressures, exchange rate volatility and the need to create a more predictable environment for businesses and investors. Analysts say institutionalised coordination will reduce policy surprises and improve market expectations.
For years, lack of synergy between the fiscal and monetary authorities had been identified as a major constraint to effective economic management, leading to overlapping mandates and liquidity challenges. The new framework is expected to address those gaps through structured engagements and data-driven decision making.
Both the CBN and the Ministry of Finance expressed optimism that the MoU will serve as a foundation for stronger macroeconomic management and accelerate Nigeria’s path to low inflation, stable growth and long-term prosperity.
