By Mariam Abeeb
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have signed a Memorandum of Understanding (MoU) to strengthen coordination between fiscal and monetary authorities and improve macroeconomic management in Nigeria.
CBN Governor, Mr Olayemi Cardoso, disclosed this on Friday, September 18, 2026, at the signing ceremony, describing the agreement as a significant milestone in the country’s pursuit of macroeconomic stability, sustainable growth and broad-based prosperity.
Cardoso said the MoU would provide a structured framework for regular consultation, information exchange and policy coordination between the two institutions. He said the framework would strengthen cooperation in areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations.
According to him, fiscal and monetary policies are complementary instruments for managing the economy, 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 governor stressed that the agreement did not establish a new relationship between the CBN and the Finance Ministry, noting that both institutions had collaborated for decades on issues including inflation management, debt sustainability, budget financing, exchange rate stability, economic reforms and responses to domestic and global economic shocks.
“What distinguishes today’s event is the formal institutionalisation of that collaboration,” Cardoso said, adding that the MoU would transform an established working relationship into one anchored by clear processes and sustained institutional commitment.
He said the timing of the agreement was particularly important as the CBN advances its transition towards an inflation-targeting framework, noting that the effectiveness of inflation targeting also depends on a supportive fiscal environment.
Cardoso explained that the MoU would provide a foundation for developing an operational framework to guide its implementation, with regular dialogue and coordinated policy assessments expected to help both institutions align their actions, minimise policy trade-offs and respond more effectively to emerging economic challenges.
He said stronger coordination among key economic institutions had become increasingly important amid global economic uncertainty, geopolitical tensions, financial market volatility and evolving development challenges.
The CBN governor said improved collaboration could strengthen economic stability, enhance investor confidence and provide a more secure foundation for sustainable growth, adding that the ultimate objective was to build a more stable, resilient and productive economy capable of creating opportunities for present and future generations.
Cardoso commended the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, for his commitment to collaboration and sound economic governance, while also praising technical teams from both institutions for their professionalism and efforts in bringing the agreement to fruition.
He reaffirmed the CBN’s commitment to sound monetary policy, macroeconomic stability and financial system resilience, saying the signing reinforced the institutions’ shared responsibility to work together in the national interest.
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