FG, CBN sign deal to tackle inflation, debt, forex

The Federal Government and the Central Bank of Nigeria (CBN) have signed a Memorandum of Understanding (MoU) to coordinate policies on inflation, public debt, government borrowing, liquidity, and foreign exchange management. The agreement, signed in Abuja, establishes a formal framework for the Federal Ministry of Finance and the CBN to align key economic decisions.

The CBN Governor, Olayemi Cardoso, highlighted that the MoU would deepen cooperation in areas such as government cash management, debt issuance, liquidity forecasting, macroeconomic analysis, and policy consultations. He emphasized that fiscal and monetary policies are complementary, as government expenditure, taxation, and borrowing decisions impact economic activity, while monetary policy influences liquidity, interest rates, and price stability.

The agreement comes as the CBN transitions towards an inflation-targeting framework, which requires a supportive fiscal environment. The Minister of Finance, Taiwo Oyedele, stated that the government aims to use the framework to prevent fiscal and monetary policies from pulling in different directions while maintaining the CBN's operational independence.

Brief written by urgent.news from Punch's own syndicated text. Machine-written — may contain errors; check the original before relying on it.