Rewane: Naira Crisis May Lead to $18 Million GDP Loss Monthly

According to estimates made by Mr. Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company Limited,

Nigeria would experience a total loss in GDP of $18 million and a loss in man hours totaling 120 hours (five days) per month as a result of the disruption in economic activity brought on by the Central Bank of Nigeria’s implementation of the currency swap of old currency notes of N1,000, N500, and N200 for newly printed Naira notes.

Rewane ascribed the dip in GDP growth to a decrease in the velocity of money circulation and an overall loss of labor hours in the economy during his presentation at the Lagos Business School.

The “total man hour loss in a month will be 120 hours and the overall GDP loss in a month will be $18,000,000, he said. The output of the trading sector might be impacted by a decrease in circulation velocity.

His forecast was based on the information that the economy’s entire money supply is N52 trillion and the total amount of cash in circulation is N3.11 trillion.

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