The Federal Government and the Central Bank of Nigeria have signed an agreement to establish a formal framework that aligns key economic decisions without compromising the apex bank’s independence.
The Memorandum of Understanding on Fiscal-Monetary Policy Coordination, signed in Abuja, allows the Federal Ministry of Finance and the CBN to coordinate policies on inflation, public debt, government borrowing, liquidity and foreign exchange management as the country moves towards a new inflation-targeting framework.
The CBN Governor, Olayemi Cardoso, said the agreement would deepen cooperation in government cash management, debt issuance, liquidity forecasting, macroeconomic analysis and policy consultations.
He said the agreement is particularly significant as the CBN advances its transition towards an inflation-targeting framework.
The apex governor explained that the ministry and the apex bank had collaborated for decades on inflation management, debt sustainability, budget financing, exchange rate stability and responses to economic shocks but the new agreement would formally institutionalise the relationship.
