By Sam Otuonye 

The Federal Ministry of Finance and the Central Bank of Nigeria (CBN) have formalised a new framework for closer fiscal and monetary policy coordination, in an effort to strengthen economic stability, improve policy consistency and address inflation.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Memorandum of Understanding (MoU) would institutionalise coordination through stronger information sharing, aligned macroeconomic assumptions, consistent forecasts and clearer mechanisms for resolving areas where fiscal and monetary policies could work at cross purposes.

Speaking at the signing ceremony in Abuja, Oyedele said the framework was designed to move coordination beyond personalities and make it a permanent feature of Nigeria’s economic management.

 He stressed that while the Ministry and the CBN have distinct mandates and must retain their institutional independence, their policies ultimately affect the same economy and therefore require closer coordination.

He explained that government borrowing has implications for liquidity, interest rates and financing costs, while monetary policy affects government finances.

 Exchange rates, tariffs, government spending and agricultural policies also have direct consequences for prices, revenue and economic activity.

Oyedele identified bringing inflation sustainably into single digits as a major focus of the framework, stressing that this could not be achieved through monetary policy alone. He said the Ministry would contribute through disciplined spending, sound cash and liquidity management and more efficient government financing, while fiscal interventions would address structural drivers of inflation, particularly food, energy, imported costs and logistics.

On food inflation, the Minister said the Ministry would work with relevant institutions and state governments to strengthen grain reserves, improve agricultural yields and irrigation, build climate resilience and address farm-to-market infrastructure gaps. 

He also ruled out a return to fuel subsidy, saying it would put further pressure on public finances and the naira, while improved foreign exchange stability and tax exemptions on fuel had contributed to moderating prices.

Oyedele said better economic data would also be critical to effective policy coordination, noting that the Ministry was working with the National Bureau of Statistics to expand the quality and range of data available for policy decisions.

 Under the new framework, the Ministry and the CBN will also strengthen information sharing on cash positions, financing plans, credit growth and foreign exchange flows. “Better coordination starts with a common evidence base,” he said.

The Minister said recent economic developments showed strengthening confidence in the Nigerian economy, citing a balance of payments surplus of more than $5 billion in 2025 and external reserves of over $54 billion. 

The minister pointed to increased non-oil exports, declining refined-product imports as domestic refining capacity expands, Nigeria’s return to Frontier Market status and its inclusion in JPMorgan’s new frontier local-currency government bond index.

He, however, stressed that the government’s focus extended beyond short-term portfolio inflows to attracting patient capital that would translate into factories, infrastructure, technology and jobs.

“This required policy consistency and certainty and a regulatory environment that does not impose unnecessary burdens on businesses, while the coordination framework would also take account of the economic consequences of insecurity and illicit financial flows.

Oyedele explained that the Federal Ministry of Finance would continue to drive fiscal discipline, improved liquidity management, stronger transparency and data systems, more efficient financing and reforms aimed at increasing production and easing structural inflation. 

“Nigeria has one economy. Fiscal policy cannot succeed without price stability; monetary policy cannot deliver price stability if fiscal policy pulls in the opposite direction,” he said.

The CBN Governor, Olayemi Cardoso, described the signing as a significant step in strengthening Nigeria’s macroeconomic management and economic stability, noting that fiscal and monetary policies are complementary instruments whose combined impact is stronger when they work in harmony.

Cardoso said the MoU did not create a new relationship between the two institutions, which have collaborated for decades on inflation management, debt sustainability, budget financing, exchange rate stability and responses to economic shocks.

 Rather, he said, it formalises that longstanding collaboration through structured processes for regular consultation, information exchange and policy coordination.

He said the framework would strengthen cooperation in areas including government cash management, debt issuance planning, liquidity forecasting, macroeconomic analysis and periodic policy consultations. 

The CBN Governor added that the timing was particularly important as the CBN advances its transition towards an inflation-targeting framework, whose effectiveness also depends on a supportive fiscal environment.

Cardoso commended Oyedele and the technical teams from both institutions for their roles in bringing the initiative to fruition, reaffirming the CBN’s commitment to sound monetary policy, macroeconomic stability and financial system resilience. He said the strengthened partnership would help build a more stable and resilient economy capable of creating greater opportunities for Nigerians.

By Sam Otuonye 

The Federal Government has completed the payment of ₦18.96 billion in Back-End Computation (BEC) arrears to eligible pensioners of the defunct Power Holding Company of Nigeria (PHCN) under the Defined Benefit Scheme (DBS), bringing the outstanding liability covered by the exercise to a close.

According to a statement from the Ministry of Finance, on Friday, September 18, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, disclosed that the latest payment of ₦9,476,313,375.74, representing the outstanding 50 per cent balance of the BEC arrears has been paid by the Pension Transitional Arrangement Directorate (PTAD) to 3,958 eligible PHCN DBS pensioners.

Oyedele said that the first tranche, representing 50 per cent of the arrears, amounted to ₦9,481,886,576.53 and was paid in June 2026 to 3,959 eligible pensioners.

According to him, with the payment of the second tranche, PTAD has now fully settled the BEC arrears due to all eligible PHCN DBS pensioners covered by the exercise. The two tranches bring the total amount disbursed to ₦18,958,199,952.27.

He stated that PTAD explained that the difference of ₦5,573,200.79 between the two tranches arose from the death of one pensioner after the first payment and before the second tranche was processed.

Commenting on the development, Oyedele said the completion of the payment demonstrated the Federal Government’s determination to address inherited pension liabilities and ensure that verified entitlements due to pensioners are settled.

He noted that pension obligations remain an important responsibility of government to citizens who served the country, adding that the settlement of verified liabilities would continue to receive appropriate attention within the framework of available resources and approved processes.

The PHCN BEC arrears arose from the computation of additional pension entitlements due to eligible pensioners under the Defined Benefit Scheme. Their full settlement therefore brings the outstanding BEC liability covered by this exercise to an end.

The completion of the payment is expected to provide relief to the affected pensioners and their families, many of whom have awaited the resolution of the outstanding entitlements.

The Federal Ministry of Finance commended PTAD, under the leadership of its Executive Secretary, Tolu Odunaya, for its diligence and effective coordination of the exercise, which culminated in the full settlement of the verified BEC arrears.

The statement assured that the government will continue to work through the relevant agencies to address outstanding pension liabilities and strengthen the administration of pension entitlements under the Defined Benefit Scheme.

By Sam Otuonye 

The Federation Account Allocation Committee (FAAC), at its September 2026 meeting chaired by the Accountant-General of the Federation, Mr. Shamsedeen, has shared a total sum of N2.58 trillion to the three tiers of government as Federation Account allocation including N240 billion from savings to augment the distributable revenue for the month of August 2026, from a gross revenue of N3.685 trillion.

From the total distributable amount, inclusive of Gross Statutory Revenue and Value Added Tax (VAT), the Federal Government received N804.897 billion, the States received N794.313 billion, while the Local Government Councils (LGCs) received N555.142 billion. In addition, N184.388 billion was shared as Derivation Revenue to the oil-producing States, representing the constitutionally prescribed 13 per cent of mineral revenue.

A total of N125.142 billion was deducted for the cost of collection, while N1.221 trillion was allocated for Transfers, Intervention and Refunds.

According to a statement released by the Ministry of Finance said the Gross Revenue available from Value Added Tax (VAT) for August 2026 stood at N834.843 billion, compared with N793.968 billion distributed in the preceding month, representing an increase of N40.875 billion in gross VAT revenue.

From the VAT revenue, N100.545 billion was deducted for the cost of collection, while N1.184 trillion was allocated for Transfers, Intervention and Refunds.

The balance of N733.233 billion was distributed among the three tiers of government as follows: the Federal Government received N77.323 billion, the States received N425.278 billion, while the Local Government Councils received N270.632 billion.

The Gross Statutory Revenue for August 2026 stood at N2.850 trillion, compared with N4.359 trillion received in the preceding month, representing a decrease of N1.509 trillion.

From the Gross Statutory Revenue, N24.597 billion was deducted for the cost of collection, while N37.014 billion was allocated for Transfers, Intervention and Refunds.

The remaining balance of N1.565 trillion was distributed as follows: the Federal Government received N727.573 billion, the States received N369.035 billion, while N284.511 billion was allocated to the Local Government Councils. 

In addition, N184.388 billion was distributed as Derivation Revenue to the mineral-producing States, representing 13 per cent of mineral revenue.

The statement further indicated that revenue from Petroleum Profit Tax (PPT), Hydrocarbon Tax (HT), Value Added Tax (VAT), Customs and Excise Duties (CET) levies, and Excise Duty increased significantly during the period under review.

However, revenue from Companies Income Tax/Capital Gains Tax (CIT/CGT), Stamp Duty Tax (SDT), Petroleum Royalties, Mineral Royalties, Gas Flared Penalty, Import Duty, Rental, Gas Flared Fee and Miscellaneous Oil Revenue recorded considerable decreases.

According to the statement, the total revenue distributable for August 2026 was drawn from Statutory Revenue of N1.565 trillion and Value Added Tax (VAT) of N773.233 billion, bringing the total distributable revenue to N2.338 trillion.