By Chisaa Okoye (Business Reporter)
A just released report by the National Bureau of Statistics (NBS), has revealed that Nigeria’s Gross Domestic Product (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, no thanks to the failed Naira redesign policy of the Central Bank of Nigeria (CBN).
The report obtained on Wednesday, blamed the poorly implemented Naira redesign policy of the CBN which resulted in cash crunch, for the fall in Nigeria’s economic growth between January and March 2023.
The NBS stated that the cash crunch, occasioned by the Naira redesign policy, impeded the growth of Nigeria’s economy.
“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 NBS report said.
The report added: “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% and contributed 57.29% to the aggregate GDP.
“The agriculture sector grew by -0.90%, lower than the growth of 3.16% recorded in the first quarter of 2022. Although the growth of the industry sector improved to 0.31% relative to – 6.81% recorded in the “first quarter of 2022, agriculture, and the industry sectors contributed less to the aggregate GDP in the quarter under review compared to the first quarter of 2022.”
The faulty implementation of the CBN’s Naira redesign policy, brought untold suffering and huge economic losses to Nigeria and Nigerians, resulting in its suspension by the Supreme Court.
The new naira notes are still not in circulation, despite the CBN’s insistence that there is enough supply of the new notes to commercial banks.