Nigeria Rebases GDP Report To Shape Policy Decisions, Boost Economic Forecasts

The National Bureau of Statistics (NBS) has announced that the full details of the rebased Gross Domestic Product (GDP) for the Nigerian economy will be made available to the public by the end of January 2025.

In a statement signed by the Director of Communication & Public Relations, Ichedi Joel, the NBS disclosed that it has nearly completed the process of rebasing or re-benchmarking the GDP and is set to launch the report.

GDP is the market value of all goods and services produced within a country in a given period. It measures overall economic activity and signals the direction of economic growth. It is also a barometer for assessing the health of the economy. Furthermore, GDP is an internationally recognized indicator for comparing the size of the economies of the world.

Ichedi explained that rebasing the GDP provides more insights into the economic situation of the country.

“It is important to rebalance the GDP periodically due to several factors. One reason is the dynamism of the economy, which includes both growth and recession. The dimensions of growth and recession need to be properly captured to provide clearer insights into the economic situation,” he said.

“Over time, prices and the structure of the economy change due to the introduction of new products and shifts in the variety of products and services due to technological innovations. This calls for the rebasing of the GDP to give a more accurate picture of the economy as it stands today.”

He also highlighted that some sectors that were not captured in the previous exercise will now be properly included.

“The activities of certain sectors of the economy have grown tremendously since the last rebasing, making them more significant compared to other sectors. These include the Marine and Blue Economy; Art, Culture, Tourism, and the Creative Economy; Information and Communication Technology, Innovation and Digital Economy; and E-activities.”

He further explained that the current rebasing will follow the latest frameworks for compiling National Accounts, such as the International Standard Classification of All Economic Activities (ISIC Rev. 4.0), the Central Product Classifications (CPC 2.0), and the 2008 System of National Accounts (2008 SNA).

The Statistician-General and CEO of the NBS, Semiu Adeniran, expressed excitement about sharing the findings, which will provide valuable insights into the Nigerian economy.

“The rebasing exercise will enable policymakers and analysts to obtain a more accurate set of economic statistics that truly reflect the current realities, allowing for evidence-based decision-making. It will also provide a more precise estimate of the size and structure of the economy by incorporating new economic activities that were not previously captured in the computational framework.”

Rebasing will allow the government to better understand the structure of the economy, identify sectoral growth drivers, and pinpoint sectors where policies and resources should be directed to foster economic growth, create jobs, improve infrastructure, and reduce poverty.

Olusola Akintonde