FG, CBN sign MoU to institutionalize coordination betwen fiscal, monetary policy
The Federal Government and the Central Bank of Nigeria (CBN) have signed a Memorandum of Understanding (MoU) to institutionalize coordination between fiscal and monetary authorities, thereby strengthening Nigeria’s macroeconomic management.
The agreement was signed in Abuja on Friday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the CBN Governor, Olayemi Cardoso.
The framework provides for regular consultations, information sharing, and coordinated policy assessments between the Federal Ministry of Finance and the apex bank.
It also formalizes existing collaboration on inflation management, debt sustainability, budget financing, exchange rate stability, economic reforms, and responses to domestic and global economic shocks.
Under the MoU, the Ministry and the CBN will strengthen coordination regarding government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis, and periodic policy consultations.
The government stated that the arrangement is expected to improve the consistency of macroeconomic assumptions and forecasts, enhance policy coherence, and reduce uncertainty in economic decision-making.
Speaking at the signing ceremony, Mr. Oyedele noted that the agreement would ensure fiscal and monetary coordination is driven by clear structures, data, and accountability rather than personalities.
“Independent institutions do not have to operate in isolation. Our mandates are distinct, but our outcomes are interconnected,” he stated.
The minister emphasized that the operational independence of the CBN remains protected under the new framework, describing institutional independence and policy coordination as complementary forces.
Mr. Oyedele explained that the framework will also support Nigeria’s transition toward an inflation-targeting regime by improving the quality and timeliness of fiscal and monetary data. This includes information on government cash positions, financing plans, credit growth, and foreign exchange flows.
He added that sustainable price stability requires a comprehensive, whole-of-government approach combining fiscal discipline, sound cash and liquidity management, efficient government financing, and structural reforms to address the drivers of inflation, such as food, energy, logistics, and imported costs.
The Minister further highlighted recent improvements in Nigeria’s external position, citing a balance-of-payments surplus exceeding $5 billion in 2025 and foreign exchange reserves of over $54 billion.
He stressed that the government’s focus extends beyond short-term portfolio flows to attracting patient capital to support investment, infrastructure, technology, and job creation.
On his part, Mr. Cardoso described the MoU as a significant milestone in efforts to achieve lasting economic stability and strengthen macroeconomic management.
He stated that the framework will transform the longstanding relationship between the two institutions into one anchored by clear processes and enduring commitments.
It will also provide predictable mechanisms for engagement and enhance their collective capacity to respond to emerging economic challenges.
The MoU reinforces the government’s commitment to fiscal discipline, stronger institutions, policy consistency, and evidence-based economic decision-making.