Yemi Kale, partner and chief economist at KPMG Nigeria estimates a reduction in Q1 ‘2023 nominal GDP by between N10 to N15 trillion due to challenges sourcing cash in the first quarter of 2023.
“This because about 40 percent of Nigeria’s N198 trillion GDP in 2022 is informal of which about 90 percent is cash based,” Kale said.
He added that further 30 percent of formal sector GDP is cash based. This means N106.9 trillion of total GDP is cash-based.
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“Of the 46 economic activities, agriculture, some manufacturing activities (especially food & beverage, textiles, apparels), trade, arts entertainment & recreation, accommodation & food services, road and water transport and other services are expected to be the most affected,” Kale said.
