The Federal Government and the Central Bank of Nigeria have signed a Memorandum of Understanding to institutionalise coordination between fiscal and monetary authorities and strengthen Nigeria’s macroeconomic management framework.
The agreement was signed in Abuja by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and the CBN Governor, Olayemi Cardoso.
The MoU provides a structured framework for regular consultation, information sharing and coordinated policy assessment between the Federal Ministry of Finance and the central bank.
Under the framework, both institutions will strengthen collaboration on government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations.
The government said 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, Oyedele said the agreement would ensure that coordination between fiscal and monetary authorities is based on clear structures, data and accountability rather than personalities.
He said the operational independence of the CBN remains protected under the framework, adding that institutional independence and policy coordination can work together.
“Independent institutions do not have to operate in isolation. Our mandates are distinct, but our outcomes are interconnected,” Oyedele said.
He said the framework would also support Nigeria’s transition toward an inflation-targeting regime by improving the quality and timeliness of fiscal and monetary data, including information on government cash positions, financing plans, credit growth and foreign exchange flows.
Oyedele said sustainable price stability requires coordinated government action, including disciplined fiscal policy, sound cash and liquidity management, efficient government financing and reforms targeting structural drivers of inflation such as food, energy, logistics and imported costs.
The minister also cited improvements in Nigeria’s external position, including a balance-of-payments surplus of more than $5 billion recorded in 2025 and external reserves exceeding $54 billion.
He said the government’s objective goes beyond short-term portfolio flows to attracting long-term investment in infrastructure, technology and job creation.
Cardoso described the MoU as a significant milestone in efforts to strengthen macroeconomic management and achieve lasting economic stability.
He said the agreement would transform the longstanding relationship between the two institutions into one based on clear processes and enduring commitments, while creating predictable mechanisms for engagement and improving their ability to respond to emerging economic challenges.
The Federal Government said the agreement reinforces its commitment to sound fiscal management, stronger institutions, policy consistency and evidence-based economic decision-making
