Hold on to your hats, folks! Nigeria’s economic landscape is about to get a major update. The National Bureau of Statistics (NBS) is gearing up to release rebased figures for the Gross Domestic Product (GDP) and the Consumer Price Index (CPI). This isn’t just number crunching; it’s a vital adjustment to give us a clearer view of the country’s financial health. Let’s break down what this means for you and the nation.
Here’s the lowdown:
- GDP and CPI are getting a makeover: The NBS is set to rebase both the GDP and CPI to reflect current economic realities.
- Why now? Because things have changed! The Nigerian economy is always evolving, growing in some areas and facing challenges in others.
- What does this mean? New base years will be used to calculate economic data to give a more accurate reflection of Nigeria’s economic activity.
- When will this happen? The rebased GDP and CPI are expected to be released by the end of January 2025.
Why the Big Change?
The NBS isn’t just doing this for fun. They’re making these changes to ensure we have the most up-to-date and accurate economic data. Think of it like updating your phone’s operating system. You want the latest version to work at its best, right? It’s the same with economic data.
GDP: Measuring the Nation’s Output
GDP is essentially the total value of all goods and services a country produces. It’s a key indicator of economic growth. The last time Nigeria’s GDP was rebased was in 2014, using 2010 as the base year. Now, the NBS is using 2019 as the new base year, because that’s when the economy was relatively stable and more sector-specific data was collected.
CPI: Tracking Prices and Spending
The CPI is a measure of the average change in prices paid by consumers for goods and services. It’s a crucial indicator of inflation. The current CPI uses a basket of goods that were common back in 2009. Times have changed and with it, Nigerians’ shopping habits. The NBS needs to update the basket to reflect how we spend our money today.
What’s Changed Since the Last Update?
A lot! The NBS points to a significant shift in how Nigerians spend their money, largely reflected in the 2023 Nigeria Living Standards Survey (NLSS). For example, spending on telecommunications has skyrocketed compared to other items. This change means we need a new basket of goods to accurately track prices.
Also, new sectors have emerged as heavy hitters in the Nigerian economy, such as:
- Marine and Blue Economy
- Art, Culture, Tourism, and Creative Economy
- Information and Communication Technology (ICT), Innovation and Digital Economy
- E-Activities
These sectors have grown dramatically since the last rebasing and their contributions must be accurately included in the GDP calculation. In addition, the rebased GDP will include data on illegal economic activities, further providing insights into the Nigerian economy.
The Future of Nigerian Economic Data
Statistician-General of the Federation, Prince Semiu Adeyemi Adeniran, assures us that the rebased CPI and GDP will be the best yet, using the latest international standards for compilation of data. This means more accurate and reliable insights into the Nigerian economy. So, what should you do? Stay tuned for the latest figures coming at the end of January 2025. This update is more than just numbers; it’s a reflection of Nigeria’s changing economic reality.
The NBS will also be using the latest International Standard Classification of All Economic Activities (ISIC Rev. 4.0), Central Product Classifications (CPC 2.0), and the 2008 System of National Accounts (2008 SNA) for this rebasing.