FG to Rebase GDP and CPI for Enhanced Economic Accuracy
By Patience Ikpeme
The federal government has initiated moves to rebase Nigeria’s Consumer Price Index (CPI) and Gross Domestic Product (GDP).
A statement from the ministry of finance said the Statistician General of the Federation, Prince Adeyemi Adeniran, and his team from the National Bureau of Statistics (NBS) held a crucial meeting on Friday with the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, at the Ministry of Finance headquarters in Abuja to provide a comprehensive update on the ongoing efforts to rebase Nigeria’s Consumer Price Index (CPI) and Gross Domestic Product (GDP).
Rebasing the CPI and GDP is a critical exercise that involves updating the base year used for calculating these economic indicators to reflect more current realities.
The CPI measures changes in the price levels of a basket of goods and services over time, while the GDP calculates the total economic output of the country.
The ministry of finance explained that this initiative promises significant economic advantages. These include: improved policy formulation as the rebased data will provide more precise fiscal and monetary insights, enabling policymakers to craft targeted and effective strategies for economic growth and development.
Rebasing the two indicators will foster increased investor confidence leading to clearer and more reliable depiction of Nigeria’s economic landscape expected to attract both local and international investors by reducing uncertainties and risks.
The rebasing will align Nigeria’s economic indicators with international standards, improving the country’s reputation on the global stage.
The updated CPI and GDP frameworks are slated for “validation and official launch in early 2025” the ministry said. These revised methodologies are expected to fortify Nigeria’s economic management systems, making them more robust and reflective of the current economic environment. This effort will also reinforce Nigeria’s position as a leading economic power in Africa.
The rebasing exercise is coming at a time when Nigeria is working to diversify its economy, improve revenue generation, and address macroeconomic challenges such as inflation and unemployment.
With more accurate data, policymakers will be better equipped to assess the impact of reforms, monitor progress, and make informed decisions to steer the economy toward sustainable growth.
As Nigeria prepares to validate and launch its rebased CPI and GDP frameworks, the effort shows the federal government’s commitment to transparency, economic reform, and global competitiveness.
By ensuring accurate and up-to-date economic indicators, Nigeria is taking a decisive step toward achieving its long-term development goals and strengthening its role as a key player in Africa’s economic landscape.
