• Privacy Policy
  • Terms
  • About us
  • Contact Us
  • Staff Email
Saturday, May 10, 2025
  • Login
TheMattersPress
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us
No Result
View All Result
TheMattersPress
No Result
View All Result
Home Economy/Technology

Cash scarcity crashes GDP to 2.3%

GDP

The Matters Press by The Matters Press
May 25, 2023
Reading Time: 2 mins read
0
Nigeria to rebase CPI, GDP

The cash scarcity caused by the naira redesign policy of the Central Bank of Nigeria has pushed Nigeria’s Gross Domestic Product growth below global projections of the World Bank, International Monetary Fund and the African Development Bank.

RELATED POSTS

As enrollment of nurses peaks at 115,000, Nigeria ready to outsource medical personnel to the world – TMV

With NELFUND’s Disbursement of N53b, Nigerian students have cause to celebrate – TMV

Profit surge among Nigeria’s loss-making companies indication of economic recovery – IMPI

The World Bank said that the Nigerian economy would grow by 2.8 per cent in 2023, down from 3.3 per cent in 2022, in its Africa Pulse Report April 2023 edition titled ‘Leveraging resource wealth during the low carbon transition.’

In its World Economic Outlook for April 2023 titled ‘A Rocky Recovery’, the International Monetary Fund retained its growth forecast of 3.2 per cent for Nigeria’s economy in 2023.

The African Development Bank in January projected that Nigeria’s GDP, which indicates the economic growth rate, would inch up to 3.1 per cent in 2023, adding that uncertainty about policy continuity after the election and rising insecurity will weaken the nation’s growth prospect during the year.

However, Nigeria’s GDP growth fell to 2.31 per cent in the first quarter of 2023 from 3.52 per cent in the fourth quarter of 2022, according to the National Bureau of Statistics.

The NBS attributed the decline to the adverse effects of the cash crunch experienced during the quarter.

The report read in part, “Gross Domestic Product grew by 2.31 per cent (year-on-year) in real terms in the first quarter of 2023. This growth rate declined from 3.11 per cent recorded in the first quarter of 2022, and 3.52 per cent in the fourth quarter of 2022. The reduction in growth is attributed to the adverse effects of the cash crunch experienced during the quarter.”

The decline is also slightly below a recent projection by KPMG that Nigeria’s GDP will grow at a relatively slow pace of 3 per cent in 2023 due to challenges associated with the naira redesign and political transition.

A statement after the March’s Monetary Policy Committee meeting this year, Mike Obadan, a professor of Economics and a member of the MPC, said the observed improvement from Q3 to Q4 in 2022 is not likely to be sustained in Q1 2023 due to the sustained rise in inflation, strong monetary tightening, high energy prices, subsisting insecurity and foreign exchange market pressures, challenges of the Naira redesign policy and the unintended consequences which have adversely affected domestic consumption, trade, investment and output.

“In light of these, the growth rate may fall below 3.0 per cent in Q1 2023,” he said.

The NBS also disclosed that the performance of the GDP in Q1 2023 was driven mainly by the services sector, which recorded a growth of 4.35 per cent and contributed 57.29 per cent to the aggregate GDP.

A senior lecturer at Lagos Business School, Prof Bongo Adi, said the electioneering season played a huge contributory role in the Q1 GDP decline.

According to him, the uncertainty that pervaded the period led to a partial hibernation of the productive sector.

He added, “The reason for the decline is not hard to tell. What we are looking at is the fallout of the 2023 elections. Let’s not forget all the strange policies that the CBN started to unleash which strangled businesses.”

Tags: GDP
ShareTweetPin
The Matters Press

The Matters Press

Related Posts

Smile finally visits nurses, now on enhanced salary entry point
Economy/Technology

As enrollment of nurses peaks at 115,000, Nigeria ready to outsource medical personnel to the world – TMV

May 10, 2025
Nigerians kick against re-opening of schools as COVID-19 bites harder
Economy/Technology

With NELFUND’s Disbursement of N53b, Nigerian students have cause to celebrate – TMV

May 9, 2025
Nissan recalls 1,150,000 vehicles in 3 months
Economy/Technology

Profit surge among Nigeria’s loss-making companies indication of economic recovery – IMPI

May 8, 2025
Economists Challenge IMF on call for further VAT increase in Nigeria
Economy/Technology

Nigeria will do better than IMF’s 3% growth forecast for 2025, Think Tank predicts

May 6, 2025
Egypt’s economic strides excite AfDB
Economy/Technology

AfDB President, Adesina wrong on Nigeria’s GDP at Independence – IMPI

May 5, 2025
Nigerians kick against re-opening of schools as COVID-19 bites harder
Economy/Technology

Nigeria’s scrapping of foreign education Scholarship will curb waste

May 3, 2025
Next Post
NDIC gives hope to customers of Fortis Bank

NDIC assures defunct banks’ depositors of prompt refund

Customers decry poor network, inability of ATMs to dispense cash

Nigerians get NIN with debit card merger

Recommended Stories

Nigeria targets $1.2bn export capacity for every state

Nigeria’s exports non-oil products worth $2.6bn

August 24, 2022

11 African cities understudy urban planning, development

September 28, 2022
Scheme to repatriate $200bn in forex requires right mechanisms

Scheme to repatriate $200bn in forex requires right mechanisms

February 15, 2022

Popular Stories

  • Rising prices of goods cause protests in Morocco

    Rising prices of goods cause protests in Morocco

    0 shares
    Share 0 Tweet 0
  • NLNG not responsible for gas supply shortfall, price hike

    0 shares
    Share 0 Tweet 0
  • NCC sets fresh operational fees, spectrum prices for telecom operators

    0 shares
    Share 0 Tweet 0
  • Hoarding causes hike in prices of grains

    0 shares
    Share 0 Tweet 0
  • Prices of Petrol, diesel increase in November

    0 shares
    Share 0 Tweet 0
TheMattersPress

We bring you the best news update in Nigeria

LEARN MORE »

Recent Posts

  • As enrollment of nurses peaks at 115,000, Nigeria ready to outsource medical personnel to the world – TMV
  • With NELFUND’s Disbursement of N53b, Nigerian students have cause to celebrate – TMV
  • Profit surge among Nigeria’s loss-making companies indication of economic recovery – IMPI

Categories

  • Agriculture
  • Economy/Technology
  • Energy
  • Entertainment/sports
  • Features
  • Foreign
  • Multimedia
  • Natural Resources
  • News
  • Oil and Gas
  • Photo
  • Politics
  • Security
  • Thematterspress
  • Uncategorized
  • Video

© 2025 Domo Tech World - Powered by Thematterspress.

No Result
View All Result
  • Home
  • News
  • Features
  • Thematterspress
  • Multimedia
    • Audio
    • Photo
    • Video
  • About us
  • Contact Us

© 2025 Domo Tech World - Powered by Thematterspress.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Call Us