There has been an ongoing conversation about rebasing Nigeria’s gross domestic product (GDP) data to better capture the informal sector.
The federal government is set to rebase the country’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by 2025 to enhance policy accuracy and boost investor confidence.
This was disclosed in a statement on the official X (formerly Twitter) account of the Ministry of Finance following a meeting between the Statistician General of the Federation, Adeyemi Adeniran, and his team.
According to the Ministry, Adeniran met with Minister Wale Edun to provide a comprehensive update on the ongoing rebasing of the CPI and GDP.
There has been an ongoing conversation about rebasing Nigeria’s gross domestic product (GDP) data to better capture the informal sector.
According to estimates, Nigeria’s informal sector, which is only faintly reflected in the GDP, contributes about 60% of the country’s economic activities.
Rebasing GDP and inflation data involves changing the methodology used to calculate these figures, a move expected to enhance accuracy in policy-making decisions.
Interestingly, under the current methodology, Nigeria’s GDP has dropped significantly in dollar value, causing the country to slip from its previous rank as 1st in Africa to 4th place.
In 2023, the Nigerian Bureau of Statistics (NBS) updated its unemployment data methodology to include casual and self-employed workers. This change led to a significant drop in the unemployment rate from 33.3% to about 5%.
While this adjustment has faced criticism for not reflecting the true unemployment situation in Nigeria, the NBS has defended its position, stating that the methodology aligns with global best practices.