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The Central Bank of Nigeria (CBN) and Bank of Angola have signed Memorandum of Understanding (MOU) to enable them exchange technical assistance that would strengthen financial sector regulations in both countries. The partnership deal, signed at the just concluded 2025 International Monetary Fund (IMF)/World Bank Annual Meetings in Washington DC, further extends to payment, clearing and settlement systems management as well as financial sector development. Both apex bank leaders said the MoU aligns with Africa’s broader goals of economic integration and financial stability, reports Assistant Editor COLLINS NWEZE

A financially stable Africa’s financial system comes with great benefits for the continent. Aside creating a larger single market, increasing intra-African trade, boosting productivity and competitiveness, a financially stable Africa will help in attracting more foreign direct investment to the continent. That explains why the Central Bank of Nigeria (CBN) and the Bank of Angola signed a Memorandum of Understanding (MoU) for bilateral technical cooperation at the just concluded 2025 International Monetary Fund (IMF)/World Bank Annual Meetings in Washington DC.

CBN Governor, Olayemi Cardoso, who signed on behalf of the Bank alongside the Governor of the Central Bank of Angola, Manuel Antonio Tiago Diaz, noted that the MoU aligns with Africa’s broader goals of economic integration and financial stability. Both apex bank leaders said the partnership marks a critical development between the two institutions in their efforts to deepen bilateral cooperation and technical exchange.

By the MoU, the two institutions are expected to establish a bilateral forum for the reciprocal exchange and sharing of technical assistance between the authorities, to enhance capacity in the execution of their respective Central Bank functions. They are also expected to cooperate and collaborate in the cross-border supervision of authorised institutions and exchange of cybersecurity information between them.

According to them, the institutions are to partner on licensing, supervision, resolution planning and implementation of resolution measures for cross-border financial establishments. They are also to ensure transparent and smooth periodic exchange of information as well as define procedures for exchange of information. The cooperation will also extend to exchange control, financial markets and foreign reserves management, currency management and  economic research.

The partnership further extends to payment, clearing and settlement systems management, financial sector development, banking supervision and regulation as well as Anti-Money Laundering and Countering the Financing of Terrorism. Both central bank leaders said it is their hope that the outcome of the MoU implementation will be a win-win for both parties.

 Nigeria investors’ forum in Washington DC

As part of sustained efforts to boost investor confidence and strengthen Nigeria’s economic outlook, Cardoso and Minister of State for Finance, Dr. Doris Uzoka-Anite, engaged global investors at a high-level forum on the sidelines of the IMF and World Bank Fall Meetings in Washington, D.C. They were joined by CBN Deputy Governor (Economic Policy), Dr. Mohammed Abdullahi; Special Adviser to the President on Finance and the Economy, Mrs. Sanyade Okoli; and other key government officials.

Read Also: CBN, Bank of Angola sign MoU on bilateral cooperation

The session offered a comprehensive update on Nigeria’s ongoing macroeconomic reforms, enhanced fiscal-monetary coordination, and the policy measures shaping the country’s growth trajectory. Governor Cardoso highlighted sustained stability in the foreign exchange market, steady accumulation of external reserves, and growing investor participation across fixed income and equities. Discussions emphasised how coordinated fiscal and monetary policies, supported by market transparency and strategic infrastructure reforms, are laying the foundation for durable, private-sector-led growth. “Nigeria’s focus remains clear: strengthening our fundamentals, advancing reforms, and unlocking opportunities for sustainable investment and growth. We are encouraged by the progress made so far and remain confident that ongoing reforms are laying a stronger foundation for a more resilient economy,” Cardoso said.

The Nigerian delegation reaffirmed the government’s commitment to policy consistency and continued reform momentum, creating an environment that is open, transparent, and attractive to long-term capital. Participants expressed optimism that Nigeria’s strengthened institutions, enhanced investor trust, and ongoing reforms will continue to drive sustainable growth and broaden opportunities for all stakeholders.

Building restructured, resilient economy

Nigeria’s economy has been fully restructured and is now resilient, with huge buffers against global risks, Cardoso declared said. He spoke during the Intergovernmental Group of Twenty-Four (G-24) press briefing in US. Cardoso, who is the leader of the Nigeria delegation at the meetings, said the naira has equally emerged as a competitive currency, with the economy witnessing positive trade balances and large businesses moving from imports to export of locally produced goods and commodities.

According to him, the positive economic indicators have combined to create resilient and strong buffers, keeping the economy in great shapes. Speaking on the impact of the trade tariffs on the domestic economy, the CBN boss said the tariffs are less of problems for the country. “And for us again, oil is basically the only commodity that was so exposed to the tariffs, and the impact of that was relatively modest. We now have a more competitive currency with the results that, for once, we have a situation where we have a positive balance of trade surplus, and we expect it to be six per cent in GDP for some time,” he said.

“So basically, what is happening is a complete restructuring of the economy, where we are encouraging people to go into domestic production, and, of course, discouraging imports.

“And I think we were very fortunate, because a lot of the things that were needed to have been done, we did them much earlier, and as a result of that, we’re able to create resilience and buffers against potential shocks,” he stated.

Cardoso explained that oil was the oil commodity that was exposed to the trade tariffs, but the impact was equally modest. “So, and of course, in terms of anchoring expectations, we found that those who followed the Nigerian economy were fairly comfortable. And for us, again, oil is basically the only commodity that was so exposed, and the impact of that was relatively modest,” he said.

He said the G-24 has played significant role in finding solutions to global challenges, through dialogue and exchange of ideas with global financial institutions. He said although global growth has been slow, but not as behind as would have been expected to be.

In his remarks, G-24 Chairman, Pablo Quirno noted that recent adverse shocks in global economy have left growth below pre-pandemic levels, with rising policy uncertainties creating substantial medium-term headwinds. “Emerging market and developing economies have faced deteriorating terms of trade, reduced export volumes, and declining foreign currency earnings. Many of these countries have implemented domestic policies to mitigate uncertainty, but constrained policy space underscores the urgent need for collective solutions supported by multilateral institutions,” he said

IMF’s views on reforms benefits

The reforms in exchange rate and monetary policy tightening of the CBN played significant role in the gradual drop of inflation rate to 18.02 per cent in September, International Monetary Fund (IMF) Director of the Africa Department, Abebe Selassie said. Speaking during the Regional Economic Outlook for Sub-Saharan Africa session in Washington DC, he said the Fund is encouraged by the September inflation rate, but advised that the government do more to bring down the cost of living for the people.

Nigeria’s inflation rate dropped to 18.02 per cent in September 2025, down from 20.12 per cent in August, marking a six-month streak of decline and the lowest rate in over three years. Selassie said the economic reforms will further support the projected 3.9 per cent growth for 2025, and 4.1 per cent growth for 2026. He said that to rein in inflation, the CBN tightened policy aggressively, raising rates by more than 800 basis points and strengthening liquidity management.

Selassie said the use of orthodoxy by halting central bank financing of government beyond statutory limits and re-anchoring monetary policy on its core mandate also supported the decline in inflation rate. He said the outlook for Sub-Saharan Africa is showing resilience, despite a challenging external environment with uneven prospects in commodity prices, still tight borrowing conditions, and a deterioration of the global trade and aid landscape.

“Economic growth is projected to remain steady at 4.1 percent in 2025 with a modest pickup in 2026, supported by macroeconomic stabilization and reform effort in key economies. But this resilience cannot be taken for granted. Overlapping monetary, financial, external, and fiscal vulnerabilities are present in much of the region. Uncertainty persists and risks remain tilted to the downside. Domestic revenue mobilization and strengthened debt management, can help bolster macroeconomic stability while funding essential development needs,” he said.

Selassie said the region has demonstrated remarkable resilience to a series of major shocks over the past several years, and it features several of the world’s fastest-growing economies, including Benin, Côte d’Ivoire, Ethiopia, Rwanda, and Uganda.

“However, economic performance remains markedly weaker in resource intensive countries and in several conflict-affected states. In these economies, which represent most of the region’s population, gains in income per capita remain modest—around one per cent a year on average, and less in the poorest countries,” he said.

He disclosed that fiscal fragility is a key vulnerability for much of the region, and especially lower-income countries while average public- debt ratios have stabilized but at an elevated level.

“And the debt-service burden, in terms of interest payments relative to fiscal revenues, has increased steadily, rising far above its level in other regions and crowding out priority development expenditures, for instance in Kenya and Nigeria. Twenty countries in the region are at high risk of or in debt distress,” he said.

Selassie explained that faced with high external borrowing costs and limited financial market access, governments across the region have increasingly shifted to domestic financing. Although this shift may help cushion external shocks and reduce exchange rate risk, it has not proved a panacea.

He said that the domestic cost of capital remains elevated across the region. “Local financial markets are underdeveloped—characterized by shallow depth, fragmentation, illiquidity, and high transaction costs and lending spreads. These structural weaknesses raise financing costs for both governments and firms and constrain the capacity to absorb debt, particularly longer-term instruments. Monetary instability and inflation, opaque financial sectors and debt exposures, and regulatory uncertainty intensify the problem,” he stated. The Fund also lauded Nigeria’s tax reforms, determination to increase tax revenue and reduce spending.

Division Chief, Fiscal Affairs Department at IMF, Davide Furceri, said Nigeria has done significantly well in improving revenue through tax reforms and streamlining the tax code. He said: “I think on the revenue side, there is scope to improve revenue through reform of the tax administration — to increase revenue mobilization in a way that doesn’t outgrow, for example, tax reform. And actually, Nigeria has done quite a lot in the past years. I think many of the laws that have been passed have tried to streamline the tax code,” he said.

 “These are policies that go in the right direction. On the spending side, there is scope to, on the one hand, improve the efficiency of the spending itself — and we also talk in the chapter about the gains that can be achieved when countries improve the efficiency and composition of spending — but also to increase social spending to address social vulnerability in the country,” he added.