Muhammad Mamman
The National Bureau of Statistics (NBS) has completed a significant rebasing of Nigeria’s Gross Domestic Product (GDP), updating the base year from 2010 to 2019. This statistical exercise ensures national accounts reflect the economy’s current structure, capturing evolving consumption patterns, emerging industries, and new technologies.
What is GDP Rebasing? GDP rebasing involves updating the base year for calculating GDP to provide a more accurate measure of economic activity. Moses Waniko, a national accounting expert, explains that GDP represents the total value of goods and services produced within a country, while GDP growth measures the rate of change over time. Rebasing does not inherently indicate economic growth or improved living standards but offers a clearer picture of the economy’s size and structure.
Why Rebase? Rebasing, recommended every five years by the UN Statistical Commission, incorporates new economic activities and improves data accuracy. Nigeria’s rebasing, delayed due to resource-intensive surveys like the Nigeria Living Standard Survey, began in 2018 and took five years. The 2019 base year was chosen for its data availability and relative economic stability.
Methodology The NBS employed international standards, including the System of National Accounts (SNA 2008), International Standard Industrial Classification (ISIC Rev. 4), and Central Product Classification (CPC Ver. 2). Supply and Use Tables (SUT) were developed, integrating data from surveys like the National Agricultural Sample Census.
Key Benefits Rebasing enables evidence-based policymaking by identifying sectoral growth drivers, guiding resource allocation, and enhancing investment decisions. While it does not directly reduce poverty or unemployment, it equips policymakers to address these challenges more effectively by revealing the dominance of capital-intensive sectors.
Impact The rebased GDP provides a more accurate reflection of Nigeria’s economic landscape, potentially boosting investor confidence and supporting job creation in the medium to long term. It does not alter historical data accuracy but captures more activities with greater precision. Nominal GDP reflects current prices, while real GDP uses the base year to exclude price effects.
Significance for Nigerians Rebasing informs better economic decisions for policymakers, investors, and citizens. By highlighting inequalities, it supports policies for more inclusive growth, indirectly benefiting the public.
This rebasing exercise enhances Nigeria’s economic transparency, strengthens fiscal sustainability indicators like the debt-to-GDP ratio, and supports sustainable development, fostering informed decisions across sectors.
By a consultant at Quadrant MSL, Lagos
