Nigeria’s GDP Growth Slows to 2.31% in Q1 2023 Amid Cash Crunch

Nigeria’s Gross Domestic Product (GDP) growth slowed to 2.31 per cent in the first quarter (Q1) of 2023 from 3.52 per cent in the fourth quarter of 2022.

According to a report by the Nigerian Bureau of Statistics (NBS), the decline was due to the adverse effects of the cash crunch experienced during the quarter.

“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,” NBS’ report partly read.

Findings within the report suggest that the performance of the GDP in the first quarter of 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.

The agriculture sector contracted -0.90 per cent, lower than the growth of 3.16 per cent recorded in the first quarter of 2022.

According to the the report, despite the fact that there were improvements in the  industry sector, both agriculture and industries contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.