Finance ministry, CBN seal deal to boost economic stability
Abuja, Sept. 2026 (TBL Africa) The Federal Ministry of Finance and Central Bank of Nigeria (CBN) have signed a Memorandum of Understanding (MoU) to strengthen fiscal and monetary policy coordination.
This is contained in a statement on Friday in Abuja by the Head, Information and Public Relations Unit of the Ministry, Efe Ovuakporie.
The framework seeks to improve economic stability, policy consistency and coordinated efforts to address inflation.
The Finance Minister and Coordinating Minister of the Economy, Mr Taiwo Oyedele, who spoke at the signing ceremony said that the MoU would institutionalise closer coordination between both institutions.
He said that the framework would strengthen information sharing, align macroeconomic assumptions and forecasts and provide mechanisms for resolving conflicting policy actions.
Oyedele said that the arrangement would move coordination beyond personalities and make it a permanent feature of Nigeria’s economic management.
He said that both institutions must retain their distinct mandates and independence while recognising their policies’ impact on the same economy.
The minister said that government borrowing affected liquidity, interest rates and financing costs, while monetary policy also had implications for government finances.
Oyedele said that exchange rates, tariffs, government spending and agricultural policies directly affected prices, revenue and economic activities.
He identified bringing inflation sustainably into single digits as a major focus of the framework.
The minister said that achieving the target required disciplined spending, sound liquidity management and efficient government financing, alongside measures addressing structural inflation drivers.
Oyedele said that on food inflation the ministry would work with relevant institutions and states to strengthen grain reserves and improve agricultural yields.
He said that irrigation, climate resilience and farm-to-market infrastructure would also receive attention.
Oyedele also ruled out a return to fuel subsidy, saying it would increase pressure on public finances and the naira.
He said that the improved foreign exchange stability and fuel tax exemptions had contributed to moderating prices.
The minister said that better economic data remained critical to effective policy coordination.
He said that the ministry was working with the National Bureau of Statistics (NBS) to improve the quality and range of data available for policy decisions.
The minister said that under the framework, both institutions would share information on cash positions, financing plans, credit growth and foreign exchange flows.
“Better coordination starts with a common evidence base,” Oyedele said.
He cited a balance of payments surplus exceeding five billion dollars in 2025 and external reserves above 54 billion dollars as signs of improved confidence.
Oyedele also cited increased non-oil exports and declining refined-product imports as domestic refining capacity expands.
He said that the country’s return to Frontier Market status and inclusion in JPMorgan’s new frontier local-currency government bond index.
The minister said that the government’s focus extended beyond portfolio inflows to attracting capital that would create factories, infrastructure, technology and jobs.
Oyedele stressed the need for policy consistency, regulatory certainty and an environment that avoids unnecessary burdens on businesses.
The minister said that the framework would also consider the economic effects of insecurity and illicit financial flows.
He said that the ministry would continue promoting fiscal discipline, improved liquidity management, transparency and stronger data systems.
The minister said the framework would also provide for periodic policy consultations between the institutions.
On his part, the CBN Governor, Mr Olayemi Cardoso, described the signing as a significant step towards strengthening Nigeria’s macroeconomic management and economic stability.
Cardoso said that the fiscal and monetary policies were complementary instruments whose combined impact was stronger when implemented harmoniously.
He said the MoU formalised longstanding collaboration between both institutions through structured consultation, information exchange and policy coordination.
According to him, cooperation will cover government cash management, debt issuance planning, liquidity forecasting and macroeconomic analysis.
Cardoso said the timing was important as the CBN advances its transition towards an inflation-targeting framework.
He said that the effectiveness of the framework would depend partly on a supportive fiscal environment.
Cardoso commended Oyedele and the technical teams for bringing the initiative to fruition.
He reaffirmed the CBN’s commitment to sound monetary policy, macroeconomic stability and financial system resilience.
