FG, CBN sign pact to strengthen economic policy coordination
The federal government and the Central Bank of Nigeria have signed a Memorandum of Understanding to institutionalise coordination between fiscal and monetary authorities in the management of the Nigerian economy.
The agreement, signed on Friday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, and CBN Governor, Olayemi Cardoso, provides a structured framework for information-sharing, economic forecasting and policy coordination between both institutions.
The MoU is designed to reduce situations where fiscal and monetary policies could work at cross-purposes while preserving the CBN’s operational independence.
Speaking at the signing, Oyedele said the agreement would move policy coordination beyond dependence on relationships between individuals and strengthen Nigeria’s economic institutions.
“Our mandates are distinct, but our outcomes are interconnected. Strong economies are not built around strong personalities. They are built around strong institutions,” he said.
Under the agreement, the Ministry of Finance and the CBN will work with more closely aligned assumptions and forecasts covering inflation, economic growth, government revenue, liquidity, financing needs and the external sector.
The framework also provides for more structured sharing of economic information and mechanisms for resolving policy differences that could undermine macroeconomic stability.
A major component of the agreement is a coordinated approach to tackling inflation, with fiscal measures expected to complement monetary policy.
The government said the approach would include disciplined public spending as well as measures aimed at reducing food, energy and logistics costs through initiatives such as strategic grain reserves, support for farmers and investment in rural roads.
