By Chidozie Nwali
Last week, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, met for the second time in two months — the first was in June. Last week’s session included the Chairman of the Federal Inland Revenue Service (FIRS), Zaccheus Adedeji, underscoring the government’s growing alignment on fiscal and monetary priorities.
Ordinarily, such meetings could be dismissed as routine, given that their offices are just 1.6km apart. After all, they regularly cross paths at local events and international forums, from IMF Spring Meetings to World Bank annual meetings. Indeed, as I write, they both accompanied the President on a State visit to Brazil. But these two meetings were deliberate—longer, structured, and publicised—signalling something Nigeria hasn’t seen in years: a coordinated policy partnership between fiscal and monetary authorities.
A New Phase for Economic Management
For much of 2024, Nigeria’s economy was defined by turbulence—currency volatility, inflationary spikes, and investor anxiety. But recent data suggests a turning point:
- The Naira has largely stabilised since Q4 2024 after months of volatility.
- The 2024 GDP rebasing valued the economy at $244 billion, up from $187.8 billion, and an expanded structure and a broader CPI basket of 960 goods (up from 740).
- Inflation, which peaked at 34.2% in 2024, has steadily declined to 21.9% as of July 2025 after the CPI rebasing. More importantly, it has started to moderate, with inflation falling for four consecutives months since April 2025.
- GDP growth reached 3.13% in Q1 2025, accelerating from 2.98% in Q1 2024 and 2.31% in Q1 2023. This means the economy is growing faster from year to year.
These gains are neither accidental nor temporary. They reflect a deliberate recalibration of policy under President Bola Tinubu’s economic reforms, where Edun and Cardoso are central players.
Why the Meetings Matter
At a recent media briefing, Edun distilled the government’s economic strategy into two goals:
“First, to create a stable macroeconomic environment where private investments can thrive, scale, and be sustained across sectors. Second, to build stronger government savings that fund strategic investments in education, healthcare, and infrastructure—the pillars of productivity and inclusive growth.”
The government has set an ambitious target of 7% annual GDP growth in the medium term. Achieving this will require more than incremental adjustments—it demands policy coherence, operational discipline, and an environment where investment decisions are predictable.
This is why Edun’s fiscal policies and Cardoso’s monetary reforms are inseparable. Stabilising the macroeconomy is the foundation, but sustaining that stability while accelerating growth requires synchronised action. In many ways, their partnership is redefining Nigeria’s economic playbook.
Wale Edun: Fiscal Discipline Meets Growth Ambition
Since assuming office, Edun has anchored Nigeria’s fiscal strategy on discipline, transparency, and growth. His reforms target both the revenue base and public expenditure.
Fiscal Achievements
- Deficit Reduction – Fiscal deficit declined from 5.3% of GDP in 2022 to 4.1% in 2024, with a target of below 3.5%.
- Curtailing CBN Borrowing – The administration has ended the excessive reliance on “ways and means” advances, which previously undermined fiscal credibility, and exacerbated macroeconomic instability.
- Revenue Growth – Customs collections hit ₦6.1 trillion in 2024, while oil production stabilised at 1.7 million barrels per day, the highest in nearly a decade.
- Tax Reforms – The Nigerian Tax Act, with implementation starting in 2026, aim to simplify compliance, improve fairness, and potentially double Nigeria’s tax-to-GDP ratio as the government has set a target of 18% tax to GDP ratio.
For Edun, these efforts are not just technical adjustments but part of a broader cultural shift—one where government agencies are held accountable for measurable results, and fiscal policy drives private-sector-led growth.
Olayemi Cardoso: Restoring Monetary Credibility
Cardoso inherited a fragile monetary environment, marked by fragmented exchange rates, investor uncertainty, and declining reserves. His approach has been firm, transparent, and orthodox.
Monetary Achievements
- Taming Inflation – The Monetary Policy Rate (MPR) was raised by 875 basis points to 27.5%, helping drive inflation down from 34.2% to 21.9% in just one year.
- Exchange Rate Reforms – Unifying Nigeria’s multiple exchange rate windows restored transparency and reduced arbitrage. Liquidity has returned to Nigeria’s foreign exchange market and international payments are back with Nigeria issued cards.
- Clearing FX Backlogs – Over $7 billion in foreign exchange obligations were settled, reassuring investors and freeing up liquidity.
- Strengthening Reserves – External reserves grew to $41 billion in August 2025, up from $32 billion in May 2023, providing over 13 months of import cover.
- Banking Sector Resilience – New recapitalisation rules require internationally licensed banks to raise their capital to ₦500 billion, aligning the sector with global standards.
Cardoso has also transformed the CBN’s culture, introducing greater transparency in decision-making and restoring investor confidence in monetary policy credibility.
A Synergistic Approach
Where past administrations struggled with policy misalignment, Edun and Cardoso represent a new unified front. The results are becoming visible:
- Stable Currency – Coordinated interventions have reduced volatility in the Naira.
- Growth-Oriented Stability – Monetary tightening complements fiscal reforms, balancing price stability with expansionary ambitions.
- Investment Attraction – There is a tremendous and increasing interests in Nigeria, particularly in technology, agriculture, and renewable energy, reflects renewed investor confidence.
- Diversification Gains – Non-oil exports rose 20% in 2024, and Q1 2025 recorded a current account surplus of $3.73 billion.
These are not isolated wins; they are cumulative effects of policies pulling in the same direction.
Beyond the Numbers
While economic indicators are improving, sustaining these gains will test both leaders. Inflation remains above target, debt service pressures persist, and the challenge of ensuring inclusive growth looms large. Yet, the foundations are stronger than they’ve been in a decade.
In many ways, the Edun–Cardoso collaboration signals a cultural reset in Nigeria’s economic management: a break from policy fragmentation, a commitment to evidence-based decision-making, and a willingness to prioritise long-term stability over short-term optics.
As Edun recently put it:
“Our goal is to create a resilient economy that works for all Nigerians.”
If the current trajectory holds, Nigeria could enter a new era—one where fiscal and monetary policy finally pull in the same direction to unlock the country’s vast potential.
