Nigeria may lose $18m in GDP monthly – Rewane

The chief executive officer of Financial Derivatives Company, Bismarck Rewane, has said that Nigeria may suffer a Gross Domestic Product loss of $18 million monthly owing to the negative effects of the naira redesign policy of the Central Bank of Nigeria.

Rewane spoke during a recent presentation at the Lagos Business School, according to a report by The Cable.

“Total man-hours loss in a month will be 120 hours and total GDP loss in a month will be $18 million,” Rewane said, also attributing the decline in the GDP growth to the reduction in velocity of money in circulation.

“Trade is settled mainly in cash and POS, although 70 per cent of trading transactions are settled by cash.

“Therefore, velocity of circulation in the trading sector (16 times) is approximately four times more than the formal sector.

“A decline in the velocity of circulation could reduce output in the trading sector. Hence its contribution to the GDP will fall.”