In spite of the major cash crunch faced by Nigerians in Q1 of 2023, report from OPEC has shown that the economy grew by 2.4%
In its monthly Oil Market Report for August, the Organisation of the Petroleum Exporting Countries (OPEC) says Nigeria’s economy grew by 2.4% in Q1 of 2023.
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OPEC explained that this growth was against the 3.6% growth recorded in the fourth quarter of 2022.
According to the report, after Nigeria’s economy grew by 3.6% in 2022, it should decelerate in 2023.
Furthermore, it said high inflation continued to burden Nigeria’s economy.
“Inflation data for June shows an ongoing acceleration, with an annual rate of 22.8% year-oo-year, following 22.4% y-o-y in May and 22.2% in April and 22% in March.
“Food inflation has been a key factor in this rise, reaching 25.1% year-on-year in June, after 24.8% y-o-y in May.
“A combination of factors, including the impact of climate change, population pressures contributed to food scarcity.
Also, it said, Nigeria’s below-average output in the agricultural sector led to the scarcity of food resources in recent years.
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It said the Nigerian government had unveiled a comprehensive financial package amounting to ₦500 billion to assist.
The report said the Central Bank of Nigeria (CBN) lifted the key policy rate by 25 basis points to 18.75% in July to lower inflation.
