The National Bureau of Statistics (NBS) has announced plans to rebase Nigeria’s Gross Domestic Product (GDP) and Consumer Price Index (CPI) by the end of January 2025. This initiative aims to provide a more accurate representation of the nation’s economic landscape by incorporating significant developments in various sectors.
Reuters
Key Highlights:
Inclusion of Emerging Sectors: Since the last GDP rebase in 2014, Nigeria’s economy has witnessed substantial growth in areas such as the marine and blue economy, arts, culture and tourism, information and communication technology, and e-commerce. The upcoming rebase will integrate these sectors to reflect their current contributions to the economy.
Reuters
Updated Base Year: The NBS has selected 2019 as the new base year for GDP calculations, citing its “relative economic stability” compared to subsequent years marked by significant economic disruptions. This decision aligns with international guidelines, which recommend avoiding years with economic instability for such exercises.
Nairametrics
Enhanced CPI Accuracy: The rebasing of the CPI will update the weightings of various goods and services to mirror current consumption patterns. This adjustment is expected to provide a more precise measure of inflation, aiding policymakers and investors in making informed decisions.
Nairametrics
Implications for the Nigerian Economy:
Rebasing the GDP and CPI is anticipated to offer several benefits:
Improved Economic Planning: A more accurate GDP figure will enable better economic and development planning, allowing for targeted policy interventions.
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Enhanced Investment Climate: Transparent and up-to-date economic data can bolster investor confidence, potentially attracting foreign direct investment.
Refined Monetary Policy: An updated CPI will provide the Central Bank of Nigeria with a more reliable basis for formulating monetary policies to manage inflation effectively.
Contextual Economic Challenges:
This rebasing effort comes at a time when Nigeria is grappling with economic challenges, including rising inflation. As of December 2024, the inflation rate climbed to 34.80%, marking the fourth consecutive monthly increase. This surge is largely attributed to higher food and non-alcoholic beverage prices, influenced by increased demand during the festive season.
Reuters
Additionally, the United Nations has appealed for $910 million to address the humanitarian crisis in Nigeria’s northeast, where 7.8 million people require assistance due to prolonged insurgency and severe flooding. The economic strain from these crises is compounded by the nation’s cost of living challenges, underscoring the importance of accurate economic data for effective policy responses.
Reuters
The forthcoming rebasing of Nigeria’s GDP and CPI is a critical step toward aligning statistical measurements with current economic realities, thereby facilitating more effective governance and economic management.
