Nigeria Central Bank Measures Could Hinder Economic Growth, Says KPMG Nigeria

KPMG Nigeria has cautioned that the Central Bank of Nigeria's (CBN) recent monetary tightening measures could hinder banks from extending credit, potentially
impacting economic growth. The firm highlighted the potential consequences of the elevated interest rates, including increased non-performing loans, in a flashnote titled 'CBN’s Monetary Tightening: The Trade-Off Dilemma'.

The recent hike in the Monetary Policy Rate (MPR) to curb inflation may hamper borrowing, leading to slower economic growth. Additionally, KPMG emphasized the need for collaborative efforts between fiscal and monetary authorities to address cost-push inflation effectively.

The firm underscored the importance of balancing price stability with economic growth objectives amid the tightening policy stance.