Nigeria’s economy increased by 2.4% in Q1- OPEC
By Felicia Nwosu
The Organisation of Petroleum Exporting Countries (OPEC) in its recently released monthly oil report has given a rundown of Nigeria’s economic growth from 2022. The result showed that Nigeria’s economy grew by 3.3 percent in 2022, with a forecast to decelerate in 2023. It presented data that indicated that Nigeria’s economy grew by 2.4% in Q1 of 2023 so far.
The global oil exporter revealed that this was against a growth of 3.6 percent in the fourth quarter of 2022, an indicator of the 2023 anticipated slowdown. It noted that the harsh drop was stimulated by factors such as high inflation, the impact of climate change, population pressures, and the below-average output of the agricultural sector, which continued to burden Nigeria’s economy.
The OPEC report clearly stated that the aftermath of the above-mentioned challenges, no doubt, have adversely affected some financial institutions. It disclosed that with the impact of such multiplying effect had in May 2023, Stanbic IBTC Bank Nigeria Purchasing Managers Index retracted to stand at 51.7 in July after a level of 53.2 in June was reached.
“Inflation data for June showed an ongoing acceleration, with an annual rate of 22.8 per cent y-o-y, following 22.4 per cent y-o-y in May and 22.2 per cent in April and 22 per cent in March. Food inflation has been a key factor in this rise, reaching 25.1 per cent year-on-year (y-o-y) in June, after 24.8 per cent y-o-y in May,” the report revealed.
OPEC maintained that the Central Bank of Nigeria (CBN) lifted the key policy rate by 25 basis points to 18.75 per cent in July to lower inflation.
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