Economists have expressed deep concern that the Federal Government’s efforts to curb inflation through monetary policy measures, such as raising interest rates and reducing liquidity, have created a challenging financial environment for businesses.

They expressed the concern during the Association of Corporate Treasurers of Nigeria (ACTN) networking and breakfast meeting held at the weekend in Lagos, with the theme, “Connect and Grow”.

They noted that the measures were hindering investment and sectors critical to job creation and economic growth, particularly 96 per cent of 40 million small and medium-sized enterprises (SMEs) in Nigeria as well as the overall economy.

The Managing Director/Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, outlined the struggles faced by businesses, particularly job creators, due to high interest rates and limited access to affordable credit.

In his presentation titled: “CBN Monetary Policy and its Implication for Corporate Treasury,” Yusuf argued that the current financial system made it difficult for businesses to access cheaper credit, with onerous requirements such as cash releases or bank guarantees being out of reach for many.

He criticised the Central Bank of Nigeria (CBN) for focusing narrowly on inflation control by tightening monetary policy, which, he said, was making it nearly impossible for.