The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance have signed a Memorandum of Understanding (MoU) to strengthen fiscal and monetary policy coordination and promote macroeconomic stability in Nigeria.

CBN Governor, Olayemi Cardoso, who spoke at the signing ceremony on September 18, 2026, said the agreement formalises the longstanding collaboration between the two institutions on critical economic issues. He said the partnership is aimed at supporting stronger macroeconomic management, economic stability and sustainable prosperity.

‎According to Cardoso, fiscal and monetary policies are complementary tools for managing the economy, with fiscal policy influencing economic activity through government spending, taxation and borrowing, while monetary policy focuses on price stability and financial system soundness through the management of liquidity, interest rates and monetary conditions.

‎He said the MoU provides a structured framework for regular consultation, information sharing and policy coordination between the CBN and the Finance Ministry. The framework will cover areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations.

Cardoso noted that the agreement does not establish a new relationship between the institutions, which have collaborated for decades on issues including inflation management, debt sustainability, budget financing, exchange rate stability, economic reforms and responses to domestic and global economic shocks.

‎He said the formalisation of the partnership would establish predictable mechanisms for engagement, improve decision-making, reduce uncertainty and strengthen the government’s ability to respond to emerging economic challenges. He added that the agreement was particularly significant as the CBN advances its transition towards an inflation-targeting framework.

The CBN governor said the MoU would also support the development of an operational framework for implementing the agreement, with regular dialogue, information sharing and coordinated policy assessments expected to help both institutions align their actions and minimise policy trade-offs.

‎Cardoso commended the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, as well as the technical teams from both institutions for their roles in making the agreement possible.

He reaffirmed the CBN’s commitment to sound monetary policy, macroeconomic stability and financial system resilience, saying the partnership would strengthen efforts to build a more stable and resilient Nigerian economy.