Assessing Nigeria’s Economic Performance in 2023: A Year of Challenges and Reforms

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The Nigerian economy faced a challenging year in 2023, marked by a notable decline compared to the previous year.

The impact rippled into the banking sector, influenced by policy changes implemented by both the former President, Muhammadu Buhari, and the current President, Bola Tinubu, through the Central Bank of Nigeria (CBN). Policies such as the naira redesign, fuel subsidy removal, and exchange window unification dealt significant blows to households and businesses.

While recognizing global uncertainties like soaring inflation, rising interest rates, geopolitical shocks, and tight labor markets, the focus remains on Nigeria. Despite the touted status as the “supposed largest economy in Africa,” the country experienced highs and lows in 2023, even with the new administration’s initially fast-paced reforms, which have since slowed down.

Abdulazeez Kuranga, a macroeconomic strategist at Cordros Securities Limited, commented on the government’s reforms, expressing an expectation for gradual improvements in the local macroeconomic environment. He anticipates the phasing out of the current impact of PMS subsidy and FX reforms on the non-oil sector, higher crude oil production, improved FX supply, and an anticipated disinflationary trend in the second half of 2024.

source: The Sun

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