According to the World Bank’s latest Nigeria Development Update published in December 2022, with the title “Nigeria’s Choice”, the country’s gross domestic product (GDP) is expected to grow by 2.9 percent in the year 2023, less than the 3.1 percent for 2022. Although expected to be slightly faster than the growth of the population, this growth rate, according to the update, is still below pre-2015 levels, those of oil-producing countries (4.8 percent), and the average for Sub-Saharan Africa (3.6 percent). Services, trade, construction, and oil production are expected to lead to growth in 2023.
February 6, 2023
Nigeria Economic Update (Issue 1)
Related
Nigeria Economic Update (Issue 7)
External
reserve dropped slightly by 0.6 per cent from $28.35 billion in January 22 to
$28.19 billion in January 295. Considering the continuous decline, government
has stepped up efforts towards financing the deficit in the proposed budget
through borrowing. At the forex market, the official exchange rate remained
unchanged at N197/$ while the naira depreciated at the parallel market by 2.36
percent from N297/$ to N304/$ between January 22 and 296. Despite
the huge spread between the official and parallel market exchange rates, the
monetary authorities maintained its fixed exchange rate regime at the official
forex market. It is expected that if the demand pressure for dollar persists,
the value of naira may decline in the near term.