According to information provided by the UN, current naira shortages have severely harmed Nigeria’s economy.
In its publication, “Trade and Development Report Update; Global Trends and Prospects (April 2023),” published by the United Nations Conference on Trade and Development, the UN made this information public.
It claimed that the informal sector took the greatest toll of the shortage. It was mentioned that the country’s finances will be affected in 2023 by the oil production’s continued drop.
UNCTAD said, “In Nigeria, a shortage of cash, triggered by the replacement of the highest denominations of the country’s currency, hobbled the economy, especially the informal sector.
“Meanwhile, the continuing decline of oil production, accompanied by large-scale oil theft, poses a main threat to strained finances in Africa’s most populous nation.”
It noted that many African economies are at risk of stagflation in 2023, with half of African countries recording double-digit inflation in early 2023.