Victor Ezeja
The recent devaluation of the Naira has shaved about $193 billion off Nigeria’s gross domestic product (GDP) when converted from naira to dollar. This fact was thrown up by an analysis of the latest statistics released by the National Bureau of Statistics (NBS).
The CBN had in mid June this year announced the unification of all segments of the forex market, collapsing all windows into one. This was part of an effort to drive liquidity and stability in the forex market in Nigeria. This move has since had a counter-effect, triggering further instability in the market.
Join our WhatsApp ChannelAccording to the NBS statistics, Nigeria amassed a total GDP of N224.54 trillion for the year-long period from the first quarter of 2022 to the third quarter of 2023.
When converted to US dollars at the exchange rate on the website of the Central Bank of Nigeria (CBN) at the end of September 2023 (N768.76/$1, Nigeria’s GDP stands at approximately $292.08 billion.
However, using the exchange rate before the foreign exchange unification policy of about $462.88/$, Nigeria’s GDP would have been at approximately $485.09 billion. The naira devaluation of 39.79 per cent also triggered a loss of value in the GDP in dollar terms at the same rate.
It hit a high of N62.05 trillion in the third quarter of 2023, which is higher than the value in the second quarter of 2023 (N52.76 trillion) and in the first quarter of 2023 (N51.95 trillion), and even the third quarter of 2023-N53.18 trillion.
Blueprint also sought the views of the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), Dr Biodun Adedipe, who said Nigeria’s GDP in the US dollar would continue to shrink under the unified exchange rates regime.
He pointed out that largely import-dependent economic activities and lifestyles with a low domestic production base are a recipe for unabated depreciation of the national currency.
