The International Monetary Fund (IMF) has called for a review of the Central Bank of Nigeria (CBN) Act of 2007 to strengthen the bank’s autonomy and governance. The recommendation appears in the IMF’s latest report, “Nigeria: 2022 Article IV Consultation – Press Release; Staff Report; and Statement by the Executive Director for Nigeria.” The call for a modernisation of the CBN Act comes amid disputes over the bank’s autonomy, particularly concerning its naira redesign policy. After the Supreme Court ordered a suspension of the ban on the old N1000, N500 and N200 notes, many questioned both the court’s authority and the independence of the CBN.
Speaker of the House of Representatives Femi Gbajabiamila recently emphasized that, regardless of any claimed autonomy, the apex bank remains bound by law. He stated, “Many have argued on the independence of CBN – the autonomy of CBN. That does not make CBN above the law. The constitution gives the House the power to issue an arrest warrant against anyone; we can summon anybody and that was exactly what the House was going to do until the CBN governor came. So, we are watching, and we are monitoring very closely.”
Despite these domestic concerns, the IMF stressed that maintaining central‑bank autonomy is essential for price stability. The Fund urged the CBN to resume publishing its annual financial statements and to adopt International Financial Reporting Standards (IFRS) fully. The report notes:
> “To strengthen the central bank’s autonomy and governance and to establish price stability as its primary objective, the 2007 CBN Act needs to be modernised. The CBN’s financial reporting practices should be bolstered through full adoption of IFRS and resumption of publication of annual financial statements. More broadly, the CBN should take steps to implement the recommendations from the 2021 Safeguards assessment, as progress has been limited thus far.”
The IMF also recommended reducing the presence of government officials on the CBN’s board and committees, and safeguarding the independence and tenure of central‑bank officials. It called for legal amendments that would create independent oversight, including a majority‑non‑executive board and an audit committee independent of executive management. Financial autonomy should be protected by setting clear statutory limits on credit to government and prohibiting quasi‑fiscal operations and developmental lending activities, which need to be phased out.
A safeguards assessment completed in April 2021 found that the CBN’s internal and external audit mechanisms broadly adhere to international standards, but implementation of the assessment’s recommendations has been limited. The IMF noted that while some quasi‑fiscal activities, such as the Anchor Borrowers’ Programme that extends credit to farmers, fill market gaps, there are efficiency concerns. An excessive expansion of these activities could increase financial repression, weaken the CBN’s credibility in maintaining price stability, and intensify fiscal‑deficit monetisation. The Fund continues to engage with Nigerian authorities to address these issues.
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