The Federal Government has reiterated its commitment to implementing global best practices in the rebasing of the Consumer Price Index (CPI) and Gross Domestic Product (GDP), as well as in the conduct of the Nigeria Living Standards Survey (NLSS).
Dr. Vitalis Obi, Permanent Secretary of the Ministry of Budget and Economic Planning, highlighted this during a dialogue with experts on Friday in Abuja.
According to Obi, applying global standards in rebasing the GDP and CPI will offer a more accurate reflection of the economy, including the impact of emerging technologies.
This, he said, will enable policymakers to design more effective economic policies.
Obi further explained that the rebasing process involves updating the base year and revising the weights used in these economic calculations.
Regarding the NLSS, Obi noted that it assesses household consumption and welfare conditions.
He emphasized that updating the basket of goods and services used to calculate the CPI will enhance the understanding of inflation trends, which is crucial for maintaining monetary and price stability.
Obi pointed out that there have been substantial structural changes across various sectors since the last rebasing exercise in 2014, particularly in the rapid expansion of technology and digital industries such as fintech, e-commerce, and digital services.
He said, “You will recall that the last rebasing exercise in Nigeria was concluded in 2014. Before the exercise, the country’s GDP was approximately 270 billion dollars.”
“The rebasing saw the GDP surge to 510 billion dollars, positioning Nigeria as Africa’s largest economy and ranking 26th globally.”
“The number of sectors increased from 33 to 46, providing a more accurate economic picture.”
“These enabled policymakers to craft policies focused on job creation, poverty reduction, and informed investment decisions.”
“Since then, Nigeria’s economy has undergone significant structural changes, particularly rapid growth in technology and digital sectors, including fintech, e-commerce, and digital services.”
Nigeria Living Standards survey methodology
Prince Adeyemi Adeniran, the Statistician-General of the Federation, remarked that the Nigeria Living Standards Survey (NLSS), conducted every four to five years, produces national poverty headline rates and other indicators of household welfare.
He referenced the previous survey conducted in 2018/2019, which was published in 2020, revealing a poverty rate of 40.1 percent.
Adeniran noted that the current workshop was designed to inform experts, users, and stakeholders about the survey methodology while also seeking their input and advice.
He highlighted that the ultimate objective is to ensure that the methods used in conducting the NLSS, as well as in rebasing the GDP and CPI, are robust, aligned with international best practices, and tailored to the Nigerian context.