24/09/2026
🚨New Blog: One Economy, Two Policy Hands: Making Nigeria’s New Fiscal–Monetary Coordination Pact Work (Part 1) By Suleyman A. Ndanusa PhD, OON,
Something unusual and potentially important has happened in Abuja. The Federal Ministry of Finance and the Central Bank of Nigeria have signed a Memorandum of Understanding to coordinate fiscal and monetary policy.
On the surface, this sounds like an agreement between two institutions that should have been coordinating all along. It is a little like a husband and wife issuing a joint communiqué announcing that they have agreed to discuss the household budget. One is pleased that peace has broken out but slightly curious about how the house was previously being run.
Yet the MoU deserves serious attention. The Ministry and the CBN are the two most powerful hands on Nigeria’s economic steering wheel. One taxes, spends and borrows. The other manages money, interest rates, banking liquidity and foreign exchange. Their mandates are different, but their consequences meet every day in the price of food, the cost of credit, the value of the naira, the government’s debt service bill and the ability of businesses to survive.
When these two institutions work at cross purposes, the economy behaves like a car in which one foot is pressing the accelerator while another is pressing the brake. The engine makes an impressive noise, fuel disappears rapidly, the passengers become anxious, and remarkably little distance is covered.
Read more via - https://nesgroup.org/blog/One-Economy,-Two-Policy-Hands:--Making-Nigeria%E2%80%99s-New-Fiscal%E2%80%93Monetary-Coordination-Pact-Work-(Part-1)--By-Suleyman-A.-Ndanusa,-PhD,-OON
