The Federal Government and the Central Bank of Nigeria, CBN, have signed a Memorandum of Understanding to strengthen coordination on inflation, public debt, government borrowing, liquidity and foreign exchange management.

The agreement was signed in Abuja and provides a framework for the Ministry of Finance and the CBN to align key economic policies as Nigeria moves towards a new inflation-targeting framework.

CBN Governor, Olayemi Cardoso, said the agreement would strengthen cooperation between both institutions in areas including cash management, debt issuance, liquidity forecasting and macroeconomic analysis.

The initiative is expected to improve coordination between fiscal and monetary authorities while supporting more effective management of Nigeria’s macroeconomic policies.