Nigeria’s economy has seen a pivotal update with the release of its rebased Gross Domestic Product (GDP) figures, a move analysts say better captures the nation’s evolving economic landscape. The revised GDP, now pegged at ₦372.8 trillion (approximately $450 billion) for 2024, reflects a recalibration of baseline data to align with current production, consumption, and technological trends, according to the National Bureau of Statistics (NBS).
The Lagos-based Centre for the Promotion of Private Enterprise (CPPE), a leading economic policy advocacy group, described the exercise as a “significant milestone” in Nigeria’s economic management. In a Sunday statement, CPPE CEO Muda Yusuf emphasized that updating the GDP base year from 2010 to 2019 provides a clearer framework for policymaking and investment. “Rebasing ensures economic metrics mirror structural shifts, such as growth in sectors like telecommunications and fintech, which were underrepresented under the old model,” he explained.
GDP rebasing, a routine practice globally, adjusts the reference year for calculating economic output to account for new industries, changing consumer habits, and technological advancements. The NBS last undertook this process in 2014, when Nigeria briefly became Africa’s largest economy after overhauling its GDP methodology. The latest update incorporates data from previously overlooked informal sectors, which constitute over 50% of Nigeria’s economic activity, according to World Bank estimates.
The CPPE highlighted three immediate benefits of the revision: improved accuracy in assessing economic performance, stronger investor confidence due to transparent data, and better alignment with international benchmarks. “Reliable statistics are the bedrock of sound fiscal and monetary decisions,” the group noted, adding that up-to-date GDP figures help governments allocate resources efficiently and enable businesses to identify growth opportunities.
However, the think tank urged Nigerian authorities to adopt more frequent rebasing cycles, in line with global norms. Many advanced economies revise GDP baselines every five years, while Nigeria’s 10-year gap between updates has often led to data discrepancies. Regular adjustments, the CPPE argued, would enhance the credibility of Nigeria’s economic reporting amid efforts to attract foreign capital and stabilize its currency.
The revision arrives as Nigeria navigates austerity measures triggered by rising inflation and currency devaluation. While the new GDP figure does not alter the country’s current debt-to-GDP ratio—a critical metric for international lenders—it offers a more nuanced understanding of economic resilience. Analysts say the data could influence negotiations with multilateral institutions like the International Monetary Fund, which has repeatedly stressed the need for Nigeria to modernize its statistical systems.
As African economies increasingly adopt digital innovation, experts underscore the importance of timely data reforms. Nigeria’s rebasing initiative, analysts note, sets a precedent for other nations in the region seeking to reflect dynamic informal sectors and emerging industries in their economic planning.
