The Federal Government has announced plans to rebase Nigeria’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by early 2025, a move aimed at improving economic data accuracy and strengthening investor confidence.
This was revealed in a statement by the Ministry of Finance on its official X (formerly Twitter) account following a meeting between the Statistician-General of the Federation, Prince Adeyemi Adeniran, and the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.
The Ministry highlighted that the ongoing rebasing process will align Nigeria’s economic indicators with international standards, enhancing global comparability. According to the update, the rebased frameworks are expected to be validated and launched in 2025.
Key Economic Benefits of Rebasing
The rebasing of GDP and CPI is projected to provide significant economic advantages:
1. Enhanced Policy Accuracy: The updated data will offer more precise fiscal and monetary insights for effective policy-making.
2. Boosted Investor Confidence: A clearer and more reliable economic depiction will foster trust from local and international investors.
3. Improved Global Comparability: By aligning with international methodologies, Nigeria will strengthen its economic standing on the global stage.
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“The rebasing of the CPI and GDP promises to solidify Nigeria’s position as a leading economic force in Africa,” the Ministry noted.
Capturing the Informal Sector
The rebasing process also aims to better account for Nigeria’s extensive informal sector, which contributes approximately 60% of the nation’s economic activity but is underrepresented in the current GDP metrics.
Rebasing involves updating methodologies for calculating economic indicators. This aligns with international practices and provides a more accurate depiction of economic dynamics.
The Bigger Picture
Nigeria’s GDP has seen a drop in dollar value under the current methodology, pushing the country from its previous position as Africa’s largest economy to fourth place. The rebasing effort is expected to address such disparities.
This move follows other recent updates by the Nigerian Bureau of Statistics (NBS), including a controversial change in unemployment data methodology in 2023. The adjustment, which included casual and self-employed workers, reduced the unemployment rate from 33.3% to 5%. While this faced criticism, the NBS defended the methodology as compliant with global best practices.
The rebasing of the CPI and GDP is set to provide a clearer picture of Nigeria’s economy, paving the way for informed policymaking and sustainable growth.
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