May 26, 2023/United Capital

Nigeria’s Economic Growth Slowed to 2.3% y/y  

According to the National Bureau of Statistics (NBS) Q1-2023 GDP figures, the Nigerian economy expanded by 2.3% y/y in real terms, below the 3.5% growth rate recorded in Q4-2023, and 3.1% y/y recorded in Q1-2022.

The contraction in Q1-2023 is attributable to the shortfall of currency-in-circulation in the period which led to a slowdown in economic activity, particularly in the informal sector.

This is as most transactions are settled by cash. Also, there was a slowdown in Crop Production (+1.9% y/y vs +2.4% y/y in Q4-2022) and Trade (+1.3% y/y vs +4.5% y/y in Q4-2022). These activities constitute 35.5% of real GDP.

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