ABUJA, Nigeria (VOICE OF NAIJA)-Central Bank of Nigeria Governor Olayemi Cardoso has stressed the need for strong coordination between fiscal and monetary authorities to sustain Nigeria’s reform momentum and attract long-term investment.
In a statement on Monday, Cardoso underscored the importance of clear communication, credible data, and coordination between fiscal and monetary authorities as key to preserving the country’s reform drive and investor confidence.
He made these remarks at the London Business School’s Wheeler Institute for Business and Development during the “In Conversation with the Governor of the Central Bank of Nigeria” dialogue held on Friday, October 10, 2025.
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The session, supported by J.P. Morgan and Goldman Sachs and moderated by Professor Hélène Rey, brought together policymakers, financiers, and academics to examine Nigeria’s reform trajectory in a changing global economy.
Opening the event, a senior advisor to the Governor, Dr. Nkiru Balonwu, described the dialogue as part of the Central Bank’s renewed commitment to transparency.
“Across the world, central banking is being redefined,” she said. “This dialogue represents the CBN’s belief in open communication, continuous learning, and the power of collaboration between policymakers, academia, and markets. Transparency isn’t just style, it’s policy.”
Cardoso noted that communication itself is a policy instrument.
“People talk about interest rates and reserves, but communication is the thread that holds monetary policy together. If citizens, investors, and markets don’t understand what you’re doing, policy loses power,” he said.
He explained that the Apex Bank has made deliberate efforts to communicate the rationale behind recent reforms from FX unification to subsidy rationalisation so Nigerians and investors can see the pain of adjustment as the price of progress.
“Reforms delayed for decades have to be done decisively,” he said. “The cost of waiting was far greater than the pain of action. What we owe the public now is clarity, explaining the process and showing the results.”
Acknowledging the hardship caused by short-term shocks, the Governor said trust in the policy process is beginning to grow.
“We’re seeing a new conversation with Nigerians,” he said. “The reforms are starting to make sense because people can see the link between stability today and prosperity tomorrow.”
Cardoso emphasised that effective communication must go hand-in-hand with policy coordination.
“No central bank can stabilise an economy in isolation. Fiscal and monetary authorities must constantly shake hands, speaking the same language and heading in the same direction,” he stated.
He revealed that the CBN has strengthened its collaboration with the Ministry of Finance, the Budget Office, and other key agencies to ensure alignment on inflation management, revenue mobilisation, and FX flows.
“When fiscal and monetary policy reinforce each other,” he said, “you get predictability. And predictability is what investors price.”
Special Adviser on Financial Markets and Economic Policy, Mr. Mayokun Ajibade, expanded on this coordination effort.
“Macro stability isn’t achieved at press conferences, it’s achieved in the daily dialogue between institutions.
Today, we have real-time data sharing between the CBN and fiscal authorities, joint scenario planning, and synchronised messaging to markets.
That coherence is new, and it’s working,” he said.
Ajibade noted that the improved policy alignment has helped Nigeria manage global volatility in energy prices and currency fluctuations.
“Because the fiscal and monetary sides are now aligned, external shocks translate less violently into domestic prices,” he said.
When asked how the CBN plans to unlock growth after stabilisation, Cardoso explained that the next phase focuses on predictable policymaking to attract private capital.
“Now that volatility is easing, investors can price Nigeria again,” he said. “That predictability is the real catalyst for growth.”
He also stressed that communication includes data transparency, noting that the CBN is rebuilding trust in Nigerian statistics by improving data frequency, accessibility, and comparability with global standards.
“We’ve introduced new disclosure templates, regular market briefings, and investor engagement sessions,” he said. “When people trust your data, they can trust your decisions.”
Cardoso credited his leadership team for fostering a “culture of coherence.”
“Stability is not just a macro outcome, it’s an institutional discipline,” he said. “It means one story, one message, one direction.”
Balonwu added that the CBN’s shift toward clarity has already reshaped how markets and citizens perceive the institution.
“The Governor’s insistence on communication has turned transparency into Nigeria’s new competitive advantage,” she said. “Confidence grows when leadership explains, not when it hides.”
In his closing remarks, Cardoso reflected on the role of communication and coordination in reform management.
“What keeps me up at night is not inflation or reserves, it’s communication,” he said. “People must understand the journey, see evidence of progress, and believe that policy will stay consistent.”
He maintained that once coherence and credibility become institutional habits, Nigeria’s reform momentum will be self-sustaining.
“Markets reward clarity, citizens reward honesty, and investors reward predictability,” he said. “That’s the triangle we’re building our economy on.”
The event concluded with Professor Rey commending the CBN’s “refreshing openness” and its willingness to engage with the global policy community.
“This conversation shows that Nigeria’s Central Bank is not only stabilizing its markets,” she said, “it’s stabilizing expectations.”
The “In Conversation with the Governor of the Central Bank of Nigeria” event was hosted by the Wheeler Institute for Business and Development at London Business School and explored Nigeria’s evolving economic policy, financial reforms, and innovation agenda in the context of global economic shifts.
It was supported by J.P. Morgan and Goldman Sachs and attended by leaders from policy, academia, and the private sector.