To increase the bank’s autonomy and governance, the International Monetary Fund has advocated for a revision of the Central Bank of Nigeria Act 2007.
The CBN Act of 2007 is being called for a current revision as questions about the bank’s independence over its naira redesign strategy arise.”
Yet, the IMF emphasized the necessity of preserving the central bank’s independence in order to make price stability the bank’s primary goal. It encouraged the CBN to adhere to international norms and restart publishing its yearly financial accounts.
“Clear statutory restrictions on government borrowing should be in place, and quasi-fiscal operations and developmental loan activities should be outlawed gradually to protect financial autonomy.
Also, the IMF encouraged the CBN to curtail several quasi-fiscal operations that have grown significantly since the outbreak.
Moreover, it cautioned that an excessive increase in quasi-fiscal operations would exacerbate financial repression, undermine the credibility of the CBN’s mission on price stability, and exacerbate the propensity for monetizing fiscal deficits.