NBS Explains Need for GDP, CPI Rebasing Ahead of January Launch
By Patience Ikpeme
The National Bureau of Statistics (NBS) has provided detailed insights into its decision to rebase Nigeria’s Gross Domestic Product (GDP) and Consumer Price Index (CPI), emphasizing the importance of the exercise for understanding the nation’s economic structure and policy direction.
In a statement issued yesterday, the NBS announced that the rebased GDP report will be unveiled by the end of January 2025, alongside the relaunch of the CPI. The rebasing exercise, according to NBS Director of Communication & Public Relations, Mr. Sunday Joel, aims to provide policymakers, analysts, and stakeholders with a more accurate reflection of Nigeria’s current economic realities for evidence-based decision-making.
Joel noted, “The exercise will reveal a more accurate estimate of the size and structure of the economy by incorporating new economic activities that were not previously captured in the computational framework.”
Explaining the rationale for the GDP rebasing, Joel highlighted the dynamic nature of the economy. “The dimensions of growth and recession need to be properly captured to give more insights into the economic situation of the country. Over time, prices and the structure of the economy change due to the introduction of new products and technological innovations. This necessitates the rebasing of GDP to ensure the information accurately reflects present realities,” he stated.
GDP, which measures the market value of all goods and services produced within a country over a specific period, is a key indicator of overall economic activity and growth trends. By rebasing the GDP, the NBS aims to provide clarity on sectoral growth drivers and identify areas where government policies and resources should be focused to stimulate economic growth, create jobs, improve infrastructure, and reduce poverty.
On the imperative of rebasing the CPI, Joel explained that the last exercise was conducted in 2009, and significant changes in consumption patterns necessitate an update. The CPI measures the movement of aggregate price levels and serves as an essential macroeconomic variable for decision-making.
“Since the last rebasing, Nigeria’s consumption patterns have evolved significantly, as revealed by the 2023 Nigeria Living Standards Survey (NLSS). For example, there has been a notable increase in household expenditures on telecommunications compared to other items. The current CPI basket of goods and services needs to be updated to reflect these changes and accommodate new items,” the statement added.
The NBS underscored that the rebased GDP and CPI reports will not only provide a more realistic assessment of Nigeria’s economy but also guide policymakers in formulating strategies to address pressing economic challenges and foster sustainable development.
The launch of these rebased indices is expected to mark a significant milestone in Nigeria’s statistical reporting and economic planning efforts.
