New GDP figures from the National Bureau of Statistics show that Nigeria’s Gross Domestic Product growth decreased from 3.52 percent in the fourth quarter of 2022 to 2.31 percent in the first quarter of 2023.
The NBS attributed the drop to the negative effects of the cash crunch that occurred 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 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.