CBN and Federal Government Formalize Policy Coordination

The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, announced a new memorandum of understanding with the Federal Government aimed at institutionalizing coordination between fiscal and monetary policies. This agreement, revealed on September 22, 2026, during the 307th meeting of the Monetary Policy Committee (MPC) in Abuja, is expected to ease the country’s transition to an inflation-targeting framework.

Cardoso emphasized that while cooperation between the CBN and fiscal authorities has existed, this new agreement formalizes their relationship beyond individual tenures, reducing the risk of conflicting policies. He stated, “Individuals come, individuals go.

The last thing we want is to put it down to one individual or two individuals.” The CBN is working towards a framework where monetary policy decisions are increasingly focused on achieving a defined inflation objective.