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 enhance cooperation on fiscal and monetary policies, aiming to tackle 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 while maintaining the CBN's independence.

CBN Governor Olayemi Cardoso highlighted that the MoU would deepen cooperation in critical areas such as government cash management, debt issuance, liquidity forecasting, macroeconomic analysis, and policy consultations, thereby strengthening policy coherence and effectiveness. The agreement is particularly significant as Nigeria transitions towards an inflation-targeting framework, with Cardoso emphasizing that successful implementation requires a supportive fiscal environment alongside effective monetary policy.

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