In a bold move to realign its economic metrics with current realities, Nigeria is set to rebase its Gross Domestic Product (GDP) and inflation data by the end of January 2025. This landmark decision, coming over a decade after the last rebase in 2014, is expected to reveal hidden economic growth in burgeoning sectors like ICT, e-commerce, tourism, and the marine economy.
The National Bureau of Statistics (NBS) confirmed that the rebase will capture significant contributions from industries that were either non-existent or underrepresented in previous economic measurements. Since 2014, sectors such as the creative industry, fintech, and the blue economy have experienced exponential growth, becoming vital components of Nigeria's economy.
This update comes at a time when Nigeria's economy is undergoing structural reforms under the administration of President Bola Ahmed Tinubu. The removal of the petrol subsidy, currency devaluation, and plans to increase oil production to 2.3 million barrels per day have positioned the nation for long-term economic transformation. However, these reforms have also led to a sharp rise in inflation, which peaked at 34.8%. The government is optimistic that the rebase will provide a clearer picture of inflation trends and aid in devising more effective fiscal policies.
Economic experts have hailed the decision, emphasizing that it will bring Nigeria in line with global standards and improve its attractiveness to foreign investors. "The rebasing exercise will allow us to better understand the structure of our economy and identify areas of strength and potential growth," said an NBS official.
The rebase is also expected to elevate Nigeria’s standing on the global economic stage. During the last exercise in 2014, Nigeria’s GDP leaped by 89%, making it Africa’s largest economy. While such dramatic growth is not anticipated this time, it is expected to reflect the diversification and resilience of the economy despite recent challenges.
Analysts believe that this exercise will also have political implications, providing the government with a stronger narrative of progress as it navigates public discontent over rising living costs. Critics, however, caution against viewing the rebase as a quick fix, stressing the need for sustainable policies to translate economic growth into improved livelihoods for Nigerians.
As the world watches, Nigeria’s economic rebase could mark the beginning of a new chapter—one that acknowledges its evolving industries and the untapped potential of Africa’s most populous nation.
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