CBN, Finance Ministry Sign MoU to Strengthen Fiscal-Monetary Policy Coordination ABUJA, September 18
Oru Leonard
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have signed a Memorandum of Understanding (MoU) aimed at strengthening coordination between fiscal and monetary authorities to promote macroeconomic stability and sustainable economic growth.
CBN Governor, Mr. Olayemi Cardoso, who spoke at the signing ceremony, described the agreement as a significant milestone in Nigeria’s efforts to improve macroeconomic management and strengthen the foundation for sustainable prosperity.
Cardoso said the MoU formalises the longstanding collaboration between the two institutions and provides a structured framework for regular consultation, information exchange and policy coordination.
According to him, the framework will enhance cooperation in areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations.
“It transforms a relationship built on practice into one anchored by clear processes and enduring institutional commitment,” Cardoso said.
He explained that fiscal and monetary policies are complementary instruments of economic management, with fiscal policy influencing economic activity through government spending, taxation and borrowing, while monetary policy focuses on price stability and financial system soundness through liquidity, interest rates and broader monetary conditions.
The CBN Governor noted that greater policy harmony between the two institutions would improve decision-making, reduce uncertainty and strengthen Nigeria’s capacity to respond to emerging economic challenges.
Cardoso said the agreement was particularly significant as the CBN advances its transition towards an Inflation Targeting framework, noting that the effectiveness of inflation targeting depends not only on monetary policy but also on a supportive fiscal environment.
He added that the MoU would provide the basis for developing an operational framework to guide its implementation through regular dialogue, information sharing and coordinated policy assessments.
According to him, the ultimate objective is to build a more stable, resilient and productive Nigerian economy capable of delivering broad-based prosperity for current and future generations.
The CBN Governor stressed that the complexity of modern economic challenges requires institutions to work together rather than operate in isolation.
He said stronger coordination would become increasingly important as economies contend with global uncertainty, geopolitical tensions, financial market volatility and evolving development challenges.
Cardoso also said improved institutional collaboration could strengthen economic stability, enhance investor confidence and provide a more secure foundation for sustainable growth.
He commended the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, for his commitment to collaboration and sound economic governance, as well as technical teams from both institutions for their role in developing the agreement.
The CBN Governor reaffirmed the apex bank’s commitment to sound monetary policy, macroeconomic stability, financial system resilience and the long-term prosperity of Nigerians.
He said the signing of the MoU would strengthen the enduring partnership between the Federal Ministry of Finance and the CBN and reinforce their shared commitment to working in the national interest.
