In March 2023, the private sector of the Nigerian economy saw productivity steadily decline as a result of the country’s cash crisis, which rendered people and households unable to pay for goods and services.
This was revealed in the Stanbic-IBTC Purchasing Managers’ Index (PMI) for March, which stated that Nigerian businesses recorded a decline in purchasing activity in March as business conditions worsened throughout the month and caused output to decline to 42.3 points from the 44.7 points that were recorded in February 2023.
“The cash crisis had an impact on confidence in the private sector, which fell to its second-lowest level in the history of the series in March. Similar to how economic activity is portrayed, the report showed that “the rate of contraction in new orders quickened in March amid the cash crisis.
But Nigerian companies scaled back employment for the second month in a row during March.