GDP rebasing provides accurate picture of Nigeria’s economy – NBS

• The National Bureau of Statistics said the Gross Domestic Product rebasing exercise will provide an accurate picture of the economy
• NBS noted that the rebased data will be crucial for policymakers and analysts
• It also said the rebasing exercise will include underreported sectors

The National Bureau of Statistics (NBS) said the Gross Domestic Product (GDP) rebasing exercise aims to provide a more accurate picture of the economy.

In a statement by the Director of Communication and Public Relations, Sunday Ichedi, on Monday, January 20, the NBS said details of the rebased data will be made available to the public by the end of January 2025.

The statement added that the exercise reflects modern household spending habits and provides clearer insights into the economy for planning.

It stated that soon-to-be launched data updates the price reference period to 2024 and incorporates significant changes in household consumption patterns since the last rebasing in 2009.

Ichedi said, “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.

“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.”

Rebasing exercise will include underreported sectors

The NBS spokesman further noted that underreported sectors previously excluded from the GDP calculations will be included to capture economic diversification and dynamism.

Ichedi said, “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 added 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).

‘Rebased figures crucial for policymakers, analysts’

The statement quoted the Statistician-General and CEO of the NBS, Semiu Adeniran, as saying that the rebasing exercise will be valuable for policymakers and analysts to accurately predict economic trends.

Adeniran said, “I would like to assure all Nigerians that the expected Rebased CPI Report will be the best of its kind and will provide further 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.”

NBS chose 2019 as the new base year

In October 2024, the NBS announced plans to rebase the GDP data and the Consumer Price Index (CPI) to ensure the economy is streamlined according to changing economic realities and make for structural changes.

The bureau selected 2019 as the new base year because of the year’s status as a period of “relative economic stability” compared to other recent years, which witnessed significant economic headwinds.

It said, “Some major surveys that served as inputs into the rebasing covered this period. 2020, 2021, and 2022 were avoided as base years due to economic instabilities – this follows IMF guidelines.”

NBS further stated that 2019 was chosen because “other sector-specific administrative data for this period were collected.”

The GDP rebasing exercise shows the diversified and dynamic economic landscape, the reduced dependence of the Nigerian economy on crude petroleum and natural gas, as was previously the case, and the recognition of the increasing contribution of non-oil sectors to the economy.

Real estate displaces crude oil as third largest subsector in GDP rebasing 

Meanwhile, TheRadar earlier reported that Nigeria’s real estate sector was listed as the third largest subsector in Nigeria, displacing crude petroleum and natural gas, according to the Gross Domestic Product (GDP) rebasing exercise of the National Bureau of Statistics (NBS).

The real estate sector moved from a previous fifth position to third, having contributed 5.20 per cent to the GDP in the first quarter (Q1) of 2024.