CBN: Sustaining economic reforms with monetary, fiscal coordination

The Federal Ministry of Finance and the Central Bank of Nigeria have formalized their cooperation through a Memorandum of Understanding on fiscal and monetary policy coordination. Experts say the institutionalisation of regular policy coordination is timely and economically significant for an economy where government spending, public borrowing, liquidity conditions, exchange-rate movements, inflation and private-sector credit are deeply interconnected. The MoU provides a framework for cooperation that goes beyond personal relationships between the Minister of Finance and the Governor of the CBN, establishing structured mechanisms for information-sharing, aligned macroeconomic assumptions and the resolution of areas where fiscal and monetary actions might otherwise work at cross-purposes.

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