By Oluwakemi Kindness
The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have agreed to strengthen coordination on government cash management, debt issuance planning and liquidity forecasting.
CBN Governor, Olayemi Cardoso, disclosed this on Friday at the signing of a Memorandum of Understanding on Fiscal-Monetary Policy Coordination between the two institutions.
Cardoso said the framework will also promote information sharing, macroeconomic analysis and regular policy consultations.
He said the agreement will improve policy coherence, reduce uncertainty and strengthen the institutions’ ability to respond to emerging economic challenges.
According to Cardoso, the MoU formalises a collaboration the CBN and Finance Ministry have maintained for decades on inflation management, debt sustainability, budget financing and exchange rate stability.
He said the agreement comes as the CBN advances its transition towards an Inflation Targeting framework.
Cardoso said the success of inflation targeting depends not only on effective monetary policy but also on a supportive fiscal environment.
He said the new framework will help both institutions align their actions, minimise policy trade-offs and pursue shared national economic objectives.
Cardoso said the ultimate goal is to build a more stable, resilient and productive economy capable of delivering broad-based prosperity to Nigerians.
