The federal government and the Central Bank of Nigeria (CBN) have moved to institutionalise fiscal and monetary policy coordination with the signing of a Memorandum of Understanding (MoU) in Abuja.
The agreement is designed to strengthen policy coordination, improve information and data sharing, and promote greater coherence in the management of the Nigerian economy.
Speaking at the signing ceremony in Abuja on Friday, the minister of Finance and coordinating minister of the Economy, Taiwo Oyedele, said the MoU would institutionalise coordination between fiscal and monetary authorities without compromising the independence of the CBN.
Oyedele said: “Good economic management requires independent institutions, but independence does not mean isolation. Fiscal and monetary authorities have distinct mandates, but we serve the same economy.
“Our mandates are distinct, but our outcomes are interconnected. That is the philosophy behind this MoU. We are institutionalising coordination,” he said.
According to the minister, the new framework would provide a more structured basis for regular engagement between the Ministry of Finance and the CBN, building on existing relationships involving the Economic Management Team and the National Economic Council.
Oyedele stressed the importance of reliable and timely economic data in improving policy decisions, particularly as the CBN moves towards an inflation-targeting framework.
He said the Federal Ministry of Finance and the CBN would improve the sharing of fiscal and monetary information covering cash receipts, financing plans, credit flows and foreign exchange flows.
The minister added that the government was working with the National Bureau of Statistics (NBS) to provide additional data, including the Producer Price Index, alongside the Consumer Price Index, as well as employment and productivity statistics.
Such data, he said, would provide deeper insight into the drivers of price pressures and help policymakers identify inflationary trends before they reach consumers.
Oyedele said Nigeria recorded a balance of payments surplus of more than $5 billion in 2025, while the country’s external reserves had recently exceeded $74 billion.
He further said non-oil exports outpaced oil exports in the third quarter of 2026 for the first time, while refined petroleum product imports declined as domestic refining capacity increased.
Earlier, the CBN Governor, Olayemi Cardoso, said the signing was a significant milestone in efforts to strengthen macroeconomic management, economic stability and sustainable growth.
Cardoso stated that the MoU provides a structured framework for regular consultation, information exchange and policy coordination.
He said it would strengthen collaboration 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.
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