The Federal Government and the Central Bank of Nigeria (CBN) have signed a Memorandum of Understanding (MoU) to strengthen coordination between fiscal and monetary policies and improve economic stability.
The statement, issued on Saturday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the agreement would align key economic assumptions and forecasts used by both institutions.
These include projections for inflation, economic growth, government revenue, liquidity, financing requirements and the external sector.
The agreement also provides for stronger information-sharing between the Federal Government and the CBN, with clearer mechanisms for resolving areas where fiscal and monetary policies could work at cross-purposes.
According to the statement, the coordination will support a whole-of-government approach to tackling inflation, combining disciplined fiscal spending with measures aimed at reducing food, energy and logistics costs.
The measures include strategic grain reserves, support for farmers, investment in rural roads and engagement with state governments on road levies and infrastructure that improves access to farms.
The government and the CBN also agreed to continue measures supporting price stability in the fuel market without returning to consumption subsidies.
The statement said tax exemptions and exchange-rate stability were already helping to moderate pump prices.
READ ALSO:
- CBN Reshuffles Top Leadership, Redeploys Deputy Governors
- FTSE’s Nigeria Basket Puts ₦41trn in 3 Stocks
- Naira Rebound Faces Fiscal Test, Group Says
- Spyware, Surveillance Threaten Journalism, Civil Rights – Experts
The MoU further provides for expanded and more frequent economic data, including a Producer Price Index, employment data and productivity statistics.
The data will be developed with the National Bureau of Statistics to support the CBN’s transition towards inflation targeting.
The agreement also provides for closer coordination of government financing and cash management to reduce the risk of government borrowing crowding out credit to private businesses.
It also commits the government to continued reinforcement of fiscal governance institutions, including the Fiscal Responsibility Commission, the Bureau of Public Procurement, the Nigeria Extractive Industries Transparency Initiative and the Office of the Auditor-General.
External position strengthens
The statement noted that Nigeria’s external position strengthened through 2025 and into 2026, with the country recording an overall balance-of-payments surplus of more than $5 billion in 2025.
External reserves, it added, are currently above $55 billion.
In the third quarter of 2026, non-oil exports exceeded oil exports for the first time, while imports of refined petroleum products declined as domestic refining capacity expanded.
The government also pointed to developments in international investment markets as evidence of improving investor confidence in the Nigerian economy.
FTSE Russell has confirmed Nigeria’s return from Unclassified to Frontier Market status, effective September 21, 2026, citing improvements in foreign-exchange liquidity, capital repatriation and market accessibility.
JPMorgan also announced the inclusion of Nigeria in its new frontier local-currency government bond index.
The statement further noted the CBN’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.”
Pinnacle Daily reports that the MoU is intended to provide a more coordinated framework for fiscal and monetary decisions as the government and the CBN manage inflation, financing requirements, liquidity, economic growth and external-sector conditions.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X