New FG-CBN Agreement Targets Policy Alignment, Economic Stability
The Federal Government and the Central Bank of Nigeria (CBN) have signed a Memorandum of Understanding (MoU) aimed at deepening coordination between fiscal and monetary authorities, a move expected to strengthen macroeconomic management and support long-term economic stability.
Speaking at the signing ceremony, CBN Governor Olayemi Cardoso described the agreement as a significant milestone in Nigeria’s pursuit of stronger economic governance, noting that it formalises an existing partnership between the apex bank and the Federal Ministry of Finance.
According to Cardoso, the MoU establishes a structured framework for regular consultation, information sharing and policy coordination, providing clear mechanisms for engagement between both institutions.
He said the framework would strengthen collaboration in key areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations, with the goal of improving policy coherence and the effectiveness of economic management.
“Today’s event is distinguished by the formal institutionalisation of that collaboration,” Cardoso said, stressing that the agreement transforms a long-standing working relationship into one anchored on clear processes and enduring institutional commitment.
The CBN governor noted that fiscal and monetary policies are complementary tools of economic management and that their impact is greater when implemented in harmony.
He added that predictable mechanisms for engagement would improve decision-making, reduce uncertainty and enhance the ability of both institutions to respond to emerging economic challenges.
Cardoso also linked the agreement to the CBN’s ongoing transition towards an inflation-targeting framework, noting that international experience shows successful inflation targeting depends not only on effective monetary policy but also on a supportive fiscal environment.
Under the MoU, both institutions will engage in regular dialogue, information exchange and coordinated policy assessments designed to align policy actions, minimise trade-offs and advance shared national economic objectives.
He said the ultimate objective of the partnership is to build a more stable, resilient and productive economy capable of delivering broad-based prosperity for Nigerians.
The agreement, he added, reflects Nigeria’s determination to strengthen its policy architecture at a time of global economic uncertainty, financial market volatility and evolving development challenges.
Cardoso further stated that stronger collaboration among key economic institutions would bolster economic stability, enhance investor confidence and create a firmer foundation for sustainable growth.
The governor commended Taiwo Oyedele, Honourable Minister of Finance and Coordinating Minister of the Economy, as well as technical teams from both institutions, for their roles in bringing the initiative to fruition.
He reaffirmed the CBN’s commitment to sound monetary policy, financial system resilience and long-term economic prosperity.
