The Central Bank of Nigeria (CBN) and the Federal Ministry of Finance (MOF) have signed a Memorandum of Understanding (MOU) to harmonise the government’s fiscal and monetary policy as part of efforts to strengthen economic stability.
The Manufacturers Association of Nigeria had long emphasised the need for the harmonisation in its policies advocacy.
The Governor of the CBN, Mr Olayemi Cardoso, signed on behalf of the apex bank, while the Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, signed on behalf of the ministry in Abuja over the weekend.
Speaking at the event at the CBN headquarters, Cardoso said the deal represented a shared commitment to deepen collaboration between the two parties in the interest of the nation’s economy and the Nigerian public.
“Fiscal and monetary policies remain two important and complementary instruments for the management of a modern economy.
While fiscal policy influences economic activity through government expenditure, taxation and borrowing decisions, monetary policy promotes price stability and financial system soundness through the management of liquidity, interest rates and monetary conditions. When these policies work in harmony, their combined impact is far greater
