The Central Bank of Nigeria, CBN, Governor, Yemi Cardoso and the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele have signed a Memorandum of Understanding, MoU, to strengthen the monetary and fiscal policies in the managment ofthe economy.
Speaking at the event, Cardoso said the agreement would provide a structured framework for regular consultation, information sharing and policy coordination between the two institutions.
He said the MoU was designed to strengthen collaboration in critical areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations.
According to Cardoso, the agreement would also enhance policy coherence and improve the effectiveness of economic management.
He explained that the MoU did not establish a new relationship between the CBN and the ministry, noting that both institutions had worked together for decades on issues ranging from inflation management and debt sustainability to budget financing, exchange-rate stability and economic reform programmes.
“The difference now is that the MOU provides a clear framework for the type of consultation and information sharing between the two parties,” Cardoso said.
He added that the relationship would no longer be left to the discretion of individual office holders, but would be anchored by clear processes and enduring institutional commitment.
The CBN governor said the timing of the agreement was significant as the apex bank advances its transition towards an inflation-targeting framework.
He noted that successful inflation targeting required not only effective monetary policy but also a supportive fiscal environment.
Cardoso said regular dialogue and coordinated policy assessments would enable both institutions to better align their actions, minimise policy trade-offs and respond more effectively to emerging economic challenges.
On his part, Oyedele stressed the importance of closer cooperation between the fiscal and monetary authorities while maintaining their respective independence.
“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 now,” Oyedele said.
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