The National Bureau of Statistics (NBS) has initiated the process to rebase the country’s Gross Domestic Product (GDP) and Consumer Price Index (CPI).
This rebasing exercise aims to bring the economic indicators up to date and align them with contemporary economic realities.
The last rebasing of Nigeria’s GDP took place in 2014, and with significant transformations occurring since then, such as advancements in technology and the emergence of new economic sectors like fintech and e-commerce, there’s a critical need to recalibrate these metrics to provide more accurate representations of the economy.
At a stakeholders sensitization workshop held in Abuja, Adeyemi Adeniran, the Statistician General of the Federation, emphasized the importance of inclusivity and collaboration in the rebasing process.
He highlighted the significance of accurate and timely data in an era of rapid change and global interconnectedness, underscoring the necessity for engaging with stakeholders to ensure the success of the exercise.
Ode Ojowu, a former member of the Economic Advisory Council, underscored the implications of the rebasing on Nigeria’s macroeconomic indicators and policymaking.
He noted that the recalibration of the GDP would alter values of various economic parameters used by the government to inform policy decisions.
For instance, he highlighted how the rebasing in 2014 led to changes in financial indicators, fiscal deficit ratios, and debt stock-to-GDP ratios.
Ojowu also pointed out the potential impacts of the rebasing on Nigeria’s tax-to-GDP ratio, debt sustainability, and government revenue generation.
He cautioned against complacency solely based on the anticipated rise in GDP size, urging policymakers to scrutinize the composition of the GDP and its implications for employment generation, income enhancement, and revenue mobilization.
While the rebasing of GDP and CPI is a significant step towards improving the accuracy of economic data, Ojowu highlighted the need for complementary efforts, including the conduct of a population census.
He emphasized that outdated population data undermine the reliability of economic statistics and urged the federal government to prioritize the conduct of a population census to enhance the quality of data used in policymaking.
The commencement of the rebasing exercise signals a proactive approach by the NBS to enhance the precision and relevance of economic indicators in Nigeria.
As stakeholders engage in the process, collaboration and inclusivity will be crucial in ensuring that the rebased GDP and CPI accurately reflect the dynamics of Nigeria’s evolving economy, facilitating informed decision-making and sustainable development.
