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The Composite Purchasing Managers’ Index rose to 51.1 index points in April 2023 from 42.6 index points in March 2023, according to the Central Bank of Nigeria.
The banking industry regulator revealed in its Monetary Policy report that the economy grew but at a slow rate in April.
It stated, “The economy moderated on its current recovery trajectory, posting positive, albeit lower growth, for the tenth consecutive quarter, in spite of a multitude of headwinds to its full recovery.
“The growth performance was driven largely by the sustained growth in the services and agricultural sectors; progressive uptrend in economic activities across several sub-sectors; and sustenance of broad-based support by the Bank in growth-enhancing sectors.
“Staff projections showed that output growth recovery is expected to continue reasonably in 2023, given the significant improvements in the Composite Purchasing Managers’ Index, which rose to 51.1 index points in April 2023 from 42.6 index points in March 2023.”
The National Bureau of Statistics revealed in the first quarter Gross Domestic Product report that the economy slowed due to challenges associated with the CBN’s naira redesign policy.
It stated that Nigeria’s, “GDP grew by 2.31 per cent (year-on-year) in real terms in the first quarter of 2023.
“This growth rate declined from 3.11 per cent recorded in the first quarter of 2022, and 3.52 per cent in the fourth quarter of 2022.
“The reduction in growth is attributed to the adverse effects of the cash crunch experienced during the quarter.”
It would be recalled that the Governor of the CBN, Godwin Emefiele, had in October 2022, announced plans to redesign the old N200, N500 and N1,000 notes.
The governor decried the challenges associated with currency management, including the hoarding of banknotes by members of the public, with statistics showing that over 80 per cent of currency-in-circulation was outside the vaults of commercial banks.
Due to hardships the policy subjected Nigerians to among others, some state governments sued the Federal Government over the naira redesign policy; the Supreme Court in its ruling on March 3 extended the legal tender status of the old N200, N500, and N1,000 notes to December 31.
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