Finance Ministry and CBN Collaborate on Economic Measures

On September 23, the Federal Ministry of Finance and the Central Bank of Nigeria (CBN) signed a Memorandum of Understanding (MOU) that outlines six key measures aimed at improving the coordination between fiscal and monetary authorities to support Nigeria's economic stability. The MOU includes commitments to enhance data sharing, align economic forecasts, and strengthen policy coordination.

The institutions will work towards consistent forecasts for inflation, GDP growth, government revenue, liquidity, financing requirements, and the external sector. They will also establish mechanisms for sharing information and addressing conflicts between fiscal and monetary policies.

The government plans to maintain stability in fuel prices without reintroducing consumption subsidies and recognizes tax exemptions and exchange-rate stability as measures to moderate pump prices. Additionally, the government aims to expand the availability of economic data in collaboration with the National Bureau of Statistics to assist the CBN's transition towards inflation targeting.