First Quarter Group Results
Nigerian Economy and Key Developments in the Banking Sector
Real GDP Growth:
■ Nigeria's real GDP grew by 2.31% y/y in Q1 2023.
GDP Growth Rate
■ The oil sector contracted by 4.31% y/y and contributed 6.21% to total real GDP in Q1 2023 while
the non-oil sector expanded by 2.77% and contributed the balance of 93.79%. The expansion in
non-oil sector was driven mainly by Information and Communication (Telecommunication); 4.03%
Financial and Insurance (Financial Institutions); Trade; Manufacturing (Food, Beverage &
Tobacco); and Construction.
Headline Inflation:
Headline inflation increased to 22.04% y/y in Mar'23 from 21.91% y/y recorded in Feb'23.
3.98%
3.54%
3.11%
2.25%
3.52%
2.31%
Q3 '21
Q4'21
Q1'22
Q2'22
Q3'22
Q4'22
Q1'23
Food inflation rose by 10 bps to 24.45% y/y while core inflation decreased by 126 bps to 19.63%
y/y over the same period.
Inflation Rate
Oil Production & Price:
OPEC average monthly basket price fell by 1.5% QoQ to $78.5/bbl in Q1 2023. This rose to
$85.1/bbl in April 2023; while the average daily basket price currently stands at $75.2/bbl as at
22nd May 2023.
■ Nigeria recorded an average daily oil production of 1.51 mbpd in Q1 2023, a marginal increase
from 1.34 mbpd recorded in Q4 2022.
Foreign Reserves:
Nigerian foreign reserves declined by 4.3% QoQ from $37.1bn recorded at the end of Q4 2022 to
$35.5bn recorded at the end of Q1 2023.
Exchange Rate:
In Q1 2023, the local currency (NGN) depreciated by 0.04% against the USD. NAFEX (I&E)
window exchange rate (NGN/USD) as at Q1 2023 - 461.30 (Q4 2022 NAFEX - 461.1).
Cash Reserve Ratio (CRR) & Monetary Policy Rate (MPR):
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) voted to increase
the MPR from 17.5% to 18% while keeping all other parameters constant during the MPC
meeting held in March 2023. Cash Reserve Ratio (CRR) - 32.5%; Monetary Policy Rate (MPR) -
18.0%; and Liquidity Ratio - 30%.
20.77%
21.09% 21.47%
21.34%
21.82%
21.91% 22.04%
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Foreign Reserves / Oil Price
95.3
93.2
89.7
79.7
81.6
81.9
78.5
38.3
37.4
35.5
37.1
37.1
36.9
36.7
Sep-22
Oct-22
Nov-22
Dec-22
Jan-23
Feb-23
Mar-23
Av Monthly Basket Price of Crude (US$/bbl)
Source: National Bureau of Statistics, Central Bank of Nigeria, OPEC
© 2023 ZENITH BANK PLC | First Quarter Group Results Presentation to Investors & Analysts | Page 5View entire presentation