Edun, Cardoso Vow Closer Synergy to Boost Fiscal-Monetary Policy Coordination

Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, have reaffirmed their commitment to deepen collaboration between fiscal and monetary authorities in order to stabilise the economy, strengthen investor confidence, and accelerate growth.

The pledge was made following recent engagements between the Ministry of Finance and the apex bank, where both leaders highlighted the importance of policy alignment in addressing Nigeria’s macroeconomic challenges, particularly inflation, foreign exchange volatility, and revenue mobilisation.

According to the finance minister, the administration of President Bola Tinubu is determined to drive reforms that would improve fiscal discipline, enhance revenue generation, and ensure that government spending directly translates to growth and poverty reduction. Edun stressed that strong coordination with the CBN was essential to achieving these objectives.

“We are working hand in hand with the Central Bank to ensure fiscal and monetary policies are not working at cross purposes but rather in harmony to stabilise the economy,” Edun stated. “The challenges we face are significant, but with clear coordination, we can tame inflation, attract foreign investment, and create an enabling environment for sustainable growth.”

On his part, CBN Governor Olayemi Cardoso reiterated the apex bank’s commitment to transparency and consistency in monetary policy. He noted that recent reforms in the foreign exchange market, including the move towards a unified exchange rate system, were designed to restore investor confidence and create a level playing field for businesses.

Cardoso explained that while monetary tightening had been necessary to curb inflation, the apex bank recognised the need to balance price stability with growth objectives. He emphasised that enhanced coordination with the fiscal authorities would help ensure that government spending and tax policies complement monetary tools, thereby delivering greater impact on the economy.

“The Central Bank is determined to maintain price stability, but we also recognise that monetary policy alone cannot achieve the broader economic objectives,” Cardoso said. “That is why closer collaboration with the fiscal side is essential. Together, we are working on strategies that address not just inflation but also growth, job creation, and investment inflows.”

Observers have long argued that weak coordination between fiscal and monetary policy has contributed to Nigeria’s recurring economic instability. Periods of expansionary government spending have sometimes clashed with tight monetary policy, creating uncertainty for investors and businesses. The renewed commitment by Edun and Cardoso is therefore seen as a step towards building coherence and confidence in economic management.

Analysts also note that Nigeria’s ambitious target of reaching a $1 trillion economy by the end of the decade requires stronger synergy between both arms of economic management. Key to this will be improving revenue mobilisation, curbing inflation, stabilising the exchange rate, and ensuring efficient utilisation of government resources.

In their joint discussions, Edun and Cardoso highlighted several priority areas for collaboration. These include supporting the Federal Government’s fiscal reforms through efficient debt management, aligning monetary policy with government’s economic growth targets, promoting financial system stability, and creating incentives for private sector-led investment.

The ministers also emphasised the need to leverage technology and innovation to expand Nigeria’s tax base and improve financial inclusion. With millions of Nigerians still outside the formal financial system, stronger coordination between fiscal and monetary authorities is expected to boost access to credit for small businesses, expand digital payment systems, and enhance domestic resource mobilisation.

Furthermore, Edun disclosed that the government was working closely with the CBN to manage the impact of recent subsidy reforms and foreign exchange adjustments on ordinary Nigerians. He explained that targeted social protection measures and credit support initiatives would cushion vulnerable groups while reforms take effect.

The CBN governor assured that the apex bank would continue to engage with stakeholders to ensure that the reforms produce long-term benefits. “Our policies are geared towards building a resilient economy that works for everyone, not just in the short term but for the future,” Cardoso said.

Financial experts have welcomed the renewed partnership, stressing that effective policy alignment will be critical in addressing Nigeria’s inflation, which remains one of the highest in sub-Saharan Africa. They also pointed to the importance of stabilising the exchange rate, given its direct impact on the cost of imports, production, and consumer goods.

The collaboration between the finance ministry and the CBN is also expected to play a key role in deepening Nigeria’s engagement with international partners such as the World Bank, International Monetary Fund (IMF), and bilateral investors. Coordinated fiscal and monetary strategies are likely to strengthen Nigeria’s credibility and bargaining power in global financial negotiations.

As the government continues to implement its economic reforms under the Renewed Hope Agenda, stakeholders are watching closely to see whether the new commitment to coordination translates into measurable outcomes for businesses and households.

For now, the joint pledge by Edun and Cardoso is being interpreted as a signal of unity and determination at the top of Nigeria’s economic management team. It marks a renewed effort to harmonise fiscal discipline with monetary stability in order to steer the country towards inclusive and sustainable growth.