Cash shortages in Q1 will hamper Nigeria’s economy in 2023 –Fitch

Fitch Solutions, the research arm of the credit rating agency, Fitch Ratings has predicted that the cash shortage in the first quarter of this year will adversely affect economic growth.

it said Nigeria’s economy will grow by only 2.3 per cent this year, down from 3.1 per cent 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 per cent in 2023, down from 3.1 per cent in 2022.”

Fitch also said that the central bank’s decision to demonetise high-value banknotes had created acute cash shortages in the first quarter of 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 per cent in 2023.

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