Naira redesign policy may affect Q1 2023 GDP By 5 percent – Rewane

On Friday, an economic expert, Bismarck Rewane, projected a three-to-five-per cent drop in the gross domestic product (GDP) of Q1 2023 as a direct result of the naira redesign policy of the Central Bank of Nigeria (CBN).

Earlier, the Central Bank of Nigeria fixed February 10 as the deadline to stop the circulation of old Naira notes.

However, the Supreme in an ex parte order restrained the apex bank pending when it would thoroughly entertain the case on February 15.

Rewane, the CEO of Financial Derivatives Company Limited, shared some insights into the CBN policy’s effects on Nigerians and the economy in an interview on Channels Television on Friday.

“The impact at the end of the day is that it will affect GDP this quarter, conservatively, by three per cent, and aggressively it could reduce GDP in this quarter by five per cent if nothing is done in a hurry,” he stated

He stated that the situation Nigerians face owing to the government’s policy showed the future is bleak.

He said, “Indigestion has come out and the country is now constipated. So, we should be looking for a laxative to take care of this problem.”