Edun, Cardoso Meet to Align Fiscal and Monetary Policies, Boost Investor Confidence

Nigeria’s Finance Minister Wale Edun and Central Bank Governor Olayemi Cardoso met in Abuja on Wednesday to discuss strategies aimed at strengthening macroeconomic stability and restoring investor confidence. The high-level meeting, held at the Central Bank of Nigeria (CBN) headquarters, also included Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), marking a rare alignment of fiscal, monetary, and revenue authorities.

According to the Finance Ministry, the talks focused on harmonizing policy tools to curb inflation, improve liquidity, and boost private sector-led growth. The ministry described the meeting as a strong signal of President Bola Tinubu’s commitment to closing long-standing policy gaps that have weakened Nigeria’s economic resilience. Priority areas include containing inflation, enhancing revenue mobilization, and channeling credit into productive sectors.

The discussion comes at a critical time as Africa’s largest economy struggles with inflation at a three-decade high, a depreciating naira, and declining purchasing power. Nigeria’s inflation rate hit 21.88% in July, driven by soaring food and energy costs. Despite recent reforms, including unifying exchange rates and tightening monetary policy, the naira remains under pressure across official and parallel markets, while foreign exchange backlogs continue to challenge investor confidence.

Since taking office in 2023, President Tinubu has implemented bold economic reforms such as fuel subsidy removal and currency floatation to correct structural imbalances. While these moves earned praise from international bodies, they have caused short-term economic hardship, underscoring the need for closer coordination between fiscal and monetary policies to stabilize the economy. Analysts warn that without alignment, policy measures risk sending mixed signals to the market.

Edun reaffirmed that a unified policy direction is crucial to sustaining economic recovery, while Cardoso emphasized the CBN’s commitment to transparency and data-driven decisions. The ministry expressed optimism that coordinated efforts would unlock new opportunities for growth and investment, reinforcing Nigeria’s position as a leading economy in Africa.

Source: Business day