The federal government is set to rebase the country’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by 2025 to enhance policy accuracy and boost investor confidence.
This was disclosed in a statement on the official X (formerly Twitter) account of the Ministry of Finance following a meeting between the Statistician General of the Federation, Adeyemi Adeniran, and his team.
According to the Ministry, Adeniran met with Minister Wale Edun to provide a comprehensive update on the ongoing rebasing of the CPI and GDP.
The Ministry further announced that the validation and launch are scheduled for early 2025.
“The Statistician-General of the Federation, Prince Adeyemi Adeniran, and his team met with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, at Finance HQ earlier today to present a comprehensive update on the ongoing rebasing of the Consumer Price Index (CPI) and Gross Domestic Product (GDP).
“Set for validation and launch in early 2025, these updated frameworks are expected to strengthen Nigeria’s economic management systems and solidify its position as a leading economic force in Africa,” the Ministry said.
Economic benefits for rebasing
Accordingly, the Ministry stated that the rebasing effort will also deliver economic benefits for the country.
It highlighted that the update will boost investor confidence by providing a clearer and more reliable depiction of the economy.
Furthermore, the Wale Edun-led Ministry noted that the exercise will enhance global comparability by aligning Nigeria’s economic indicators with international standards.
“The rebasing of the CPI and GDP promises substantial economic benefits, including enhanced policy accuracy through more precise fiscal and monetary data, increased investor confidence with a clearer and more reliable depiction of the economy, and improved global comparability by aligning Nigeria’s economic indicators with international standards,” the statement added.
What you should know
There has been an ongoing conversation about rebasing Nigeria’s gross domestic product (GDP) data to better capture the informal sector.
According to estimates, Nigeria’s informal sector, which is only faintly reflected in the GDP, contributes about 60% of the country’s economic activities.
- Rebasing GDP and inflation data involves changing the methodology used to calculate these figures, a move expected to enhance accuracy in policy-making decisions.
- Interestingly, under the current methodology, Nigeria’s GDP has dropped significantly in dollar value, causing the country to slip from its previous rank as 1st in Africa to 4th place.
- In 2023, the Nigerian Bureau of Statistics (NBS) updated its unemployment data methodology to include casual and self-employed workers. This change led to a significant drop in the unemployment rate from 33.3% to about 5%.
- While this adjustment has faced criticism for not reflecting the true unemployment situation in Nigeria, the NBS has defended its position, stating that the methodology aligns with global best practices.