Nigerian Capital Market Update
Macroeconomic Overview (1/3)
The Nigerian economy grew by 2.31% Y-0-Y in real terms while inflation rose to its highest level in the last five years at 22.79%
as at Q2 2023
Gross Domestic Product
The non-oil sector
contributed 93.79% to Q1
2023 GDP growth rate,
lower than its 95.66%
contribution in Q4 2022.
Services, Agriculture, and
Industries sector contributed
57.29%, 21.66% and
21.05% to Real GDP
respectively.
2.31%
Q 1 2023 (YoY)
Inflation rate; Q2 2023
22.7%
Monetary policy rate
18.5%
(MPR) June 2023
■ Inflation reached an all-time high of 22.79%, up
by 4.1% from the 18.6% recorded in June 2022,
with potential impact on the real return on
investments
■ The CBN further increased the MPR to 18.5% in
May 2023 to enhance price stability. However,
this may impede on Bank's ability to service the
real sector of the economy
A new administration was sworn in on May 29th, 2023. Policies implemented by the new administration
include;
.
Removal of fuel subsidy.
Unification of exchange rates
•
Signing of electricity and student loan bill
•
3.52%
Suspension of some taxes
Economic Downside
The Nigerian Capital Market Update
PwC
Q4 2022 (YoY)
Top 5 Contributors to Real GDP in Q1 2023 (%)
1. Cash crunch.
Crop Production
19.48
2. Fuel subsidy removal
3.11%
3. Rising exchange rates
Trade
ICT
15.97
14.13
Oil & Gas
6.21
Real Estate
5.31
Q1 2022 (YoY)
August 2023
4View entire presentation