Market News

Wale Edun, finance minister and coordinating minister of the economy held talks on friday with Olayemi Cardoso, Governor, Central Bank of Nigeria (CBN) on how to strengthen monetary and fiscal coordination and bolster the econony.

The “high-stakes” meeting held at the CBN head office in Abuja signalled a renewed push to align fiscal and monetary policies in Africa’s largest economy.

The session, aimed at enhancing macroeconomic stability and investor confidence, underscores the Tinubu administration’s commitment to tackling economic challenges and driving sustainable growth.

The finance ministry said the meeting specifically focused on synchronizing fiscal and monetary frameworks, a critical step in addressing Nigeria’s inflationary pressures, exchange rate volatility, and debt sustainability concerns.

Both leaders reaffirmed their dedication to President Tinubu’s economic reform agenda, which includes initiatives to boost revenue, attract investment, and foster inclusive development.

“By strengthening coordination between fiscal and monetary authorities, we are laying the groundwork for long-term stability and prosperity.”

The collaboration comes as Nigeria grapples with inflation which hovered around 34.8% in 2024, driven by rising food and energy costs.

However, NBS data indicates that the headline inflation moderated to 24.48 percent in January 2025 and then to 23.2 percent in February following the Consumer Price Index (CPI) rebasing exercise.

President Tinubu’s administration targets to curb inflation to 15 percent by 2025 end, relying on the anticipated positive impact of CBN’s tighter monetary policies, coupled with fiscal reforms such as subsidy removal and tax automation.

With the N54.99 trillion planned record spending in 2025; an ambitious revenue target of over N40 trillion, which hinges on improved tax administration and private-sector investment; debt servicing costs put at N14.32; coupled with the inflation and exchange rate targets, the alignment of fiscal and monetary strategies remain essential to reducing fiscal deficits and restoring investor confidence, analysts say.

As Nigeria stands on the brink of a new economic era, the Edun-Cardoso partnership signals a unified approach to unlocking the country’s potential, the finance minister noted.

“Today’s meeting is a leap forward. The country is poised to unlock the full potential of its economy, create opportunities for all, and secure a brighter future for generations to come,” it added.