The Ministry of Finance and the Central Bank of Nigeria (CBN) have agreed to formalise data-sharing, aligned macroeconomic assumptions and set out a joint approach to inflation.
This followed the signing of a Memorandum of Understanding (MoU) on Friday in Abuja, formalising coordination between fiscal and monetary policy.
According to a statement signed by the Minister of Finance and the Coordinating Minister of Economy, Mr. Taiwo Oyedele and the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, the agreement institutionalises collaboration that has previously relied on the working relationship between the Minister of Finance and the CBN Governor, replacing it with structured, design-based coordination anchored in existing institutions and statutory provisions.
The MoU leverages coordination mechanisms Nigeria already has in place – including the Economic Management Team and the National Economic Council – and builds on statutory linkages between the two institutions under the CBN Act, which provides for the Bank’s operational autonomy alongside governance representation from the Ministry of Finance and the Office of the Accountant-General of the Federation.
“Today is important not simply because we are signing a Memorandum of Understanding, but because of what it represents,” said Mr. Taiwo Oyedele, Honourable Minister of Finance and Coordinating Minister of the Economy. “Our mandates are distinct, but our outcomes are interconnected. Strong economies are not built around strong personalities. They are built around strong institutions.”
“This signing demonstrates Nigeria’s determination to strengthen its policy architecture and enhance the effectiveness of its economic management framework.
“It is also an affirmation that when public institutions collaborate in pursuit of a shared vision, the nation benefits. Economic stability is strengthened, investor confidence is enhanced, policy outcomes improve and the foundation for sustainable growth becomes more secure.
“The signing strengthens an enduring partnership and reinforces our shared commitment to work together in the national interest. Through this partnership, we can help build a more stable and resilient economy that creates greater opportunity for all Nigerians,” Mr. Cardoso stated.
Furthermore, the statement highlighted key elements of the agreement to include aligned macroeconomic assumptions and more consistent forecasts for inflation, GDP growth, revenue, liquidity, financing requirements and the external sector.
“Stronger, more structured information-sharing between the two institutions, with clearer mechanisms for resolving areas where fiscal and monetary actions could otherwise work at cross-purposes.
“A coordinated, whole-of-government approach to inflation, combining disciplined and disinflationary fiscal spending with measures addressing food, energy and logistics costs – including strategic grain reserves, farmer support, rural road investment, and engagement with state governments on road levies and farm-access infrastructure.
“Continued price stability measures on fuel without reintroducing distortionary consumption subsidy, alongside tax exemptions and exchange-rate stability already helping moderate pump price”.
The statement explained that the agreement covers expanded and more frequent economic data – “including a Producer Price Index, employment and productivity data – developed with the National Bureau of Statistics to support the CBN’s evolution toward inflation targeting.
“Closer coordination of government financing and cash management to avoid crowding out private-sector credit, and continued reinforcement of fiscal governance bodies including the Fiscal Responsibility Commission, the Bureau of Public Procurement, NEITI and the Office of the Auditor-General”.
The statement stated that Nigeria has an external position strengthened through 2025 and into 2026, with an overall balance-of-payments surplus of more than $5 billion in 2025 and external reserves currently above $55 billion. “In the third quarter of 2026, non-oil exports outpaced oil exports for the first time, while imports of refined petroleum products declined as domestic refining capacity expanded.
“Global index providers have taken note of the improvements. FTSE Russell has confirmed Nigeria’s return from Unclassified to Frontier Market status, effective 21 September 2026, citing gains in foreign-exchange liquidity, capital repatriation and market accessibility.
“Separately, JPMorgan announced this week that Nigeria will be included in its new frontier local-currency government bond index. These achievements were further underscored by the Central Bank of Nigeria’s recognition as the 2026 Central Bank of the Year.
“Capital follows trust before returns,” Minister Oyedele said. “That is why policy consistency, certainty and clarity remain central to everything both institutions do” the statement noted.
The Federal Ministry of Finance is responsible for fiscal policy, public debt management, revenue mobilisation and coordination of Nigeria’s economic management, under the leadership of the Minister of Finance and Coordinating Minister of the Economy.
The Central Bank of Nigeria is the country’s monetary authority, statutorily mandated to pursue monetary and price stability and financial-system stability.