Coordinating minister of the economy, Wale Edun, met with the governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, at the apex bank’s headquarters in Abuja on Friday to advance efforts aimed at enhancing the synergy between fiscal and monetary policies for economic growth.
The high-level engagement was part of ongoing efforts to align policy frameworks to ensure macroeconomic stability, boost investor confidence, and support sustainable economic development.
Both officials reaffirmed their commitment to closer collaboration in tackling Nigeria’s current economic challenges and delivering on President Bola Tinubu’s economic reform agenda, which aims to stabilise the exchange rate, curb inflation, and stimulate growth.
The meeting comes amid growing calls from economic experts and stakeholders for improved coordination between the fiscal and monetary authorities to address macroeconomic imbalances and ensure policy consistency. Analysts argue that the lack of synchronisation in past policies has contributed to volatility in the foreign exchange market, inflationary pressures, and sluggish economic growth.
The Tinubu administration has prioritised economic reforms to address Nigeria’s fiscal and monetary challenges.
However, experts have emphasised that without strong coordination between the Ministry of Finance and the CBN, achieving these objectives could be difficult.
The CBN, under Cardoso, has pursued a more orthodox monetary policy approach, focused on stabilising the naira, curbing inflation, and restoring confidence in the financial system.
Meanwhile, the fiscal authorities, led by Edun, have been implementing measures to improve government revenue, reduce the fiscal deficit, and attract foreign investments.
By fostering greater collaboration, both entities aim to create a more predictable and stable economic environment that encourages investment and promotes long-term economic growth.
Nigeria has faced economic headwinds, including high inflation, foreign exchange instability, and declining investor confidence. The ongoing collaboration between fiscal and monetary authorities is expected to send positive signals to domestic and international investors, reassuring them of policy stability and economic direction.
Policy misalignment has often been cited as a key factor in Nigeria’s economic instability. For instance, while monetary tightening helps control inflation, excessive fiscal spending could counteract such efforts. Coordinated efforts between the two arms of economic management are, therefore, critical in ensuring that fiscal expansion does not undermine monetary policy objectives.
According to a message that was posted on Twitter, Friday’s meeting signifies a renewed commitment by the Tinubu administration to ensure greater policy coherence in economic management. It aligns with broader reform efforts aimed at repositioning Nigeria’s economy for sustained growth and resilience.
While details of specific agreements from the meeting remain undisclosed, sources indicate that discussions covered ways to align fiscal spending with monetary policy objectives, stabilise the foreign exchange market, and promote economic expansion through targeted interventions.
