Nigeria: Government and CBN coordinate debt, treasury, and liquidity

The Federal Ministry of Finance and the Central Bank of Nigeria (CBN) have formalized a permanent framework for coordinating state treasury management, debt issuance, liquidity forecasts, and macroeconomic assumptions in an agreement made public on September 18, 2026.

The protocol establishes regular consultations, information exchange, and coordination mechanisms between the two institutions. CBN Governor Olayemi Cardoso stated that this framework will specifically cover planning for debt issuance, public treasury management, liquidity forecasts, macroeconomic analysis, and periodic policy assessments.

Finance Minister and Coordinator of the Economy Taiwo Oyedele explained that public borrowing decisions influence liquidity and interest rates, while monetary policy affects the cost of state financing. The arrangement is also expected to enhance data sharing and align the assumptions used in economic forecasts. The minister clarified that the operational independence of the CBN remains unchanged.

This coordination comes as the central bank continues its transition to an inflation-targeting regime. In its guidelines for 2026, the CBN maintains a policy focused on disinflation and cites among the main risks the liquidity injections related to the electoral cycle, budget execution, and the rigidities of food and energy markets.

The Monetary Policy Committee kept its main interest rate at 26.5% in July. Taiwo Oyedele indicated that the government aims to sustainably bring inflation down to a single-digit level, without announcing a timeline for achieving this goal.