Cash shortages in Q1 to weaken Nigeria’s growth in 2023 –Fitch

Fitch Solutions, the research arm of credit rating agency, Fitch ratings, has predicted that Nigeria’s economy will grow by only 2.3 percent this year, down from 3.1 percent in 2022.

Fitch stated this in its Africa Monthly Outlook report released on its website on Tuesday.

“We forecast that Nigeria, Sub Saharan Africa’s largest economy and oil producer will record below-trend growth of 2.3 percent in 2023, down from 3.1 percent in 2022.”

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Fitch also said that the central bank’s decision to demonetise high-value banknotes had created acute cash shortages in Q1 2023, severely disrupting commercial operations and preventing payments.

The credit rating agency also forecast that Nigeria’s crude output will stagnate at an average of 1.5mn b/d in 2023, following a record decline of 14.0 percent in 2022.

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