The rebasing of Nigeria’s Gross Domestic Product (GDP) in 2024 marks a significant milestone in the country’s statistical and economic journey, unveiling fresh insights into the structure, size, and dynamics of the economy. This exercise, conducted by the National Bureau of Statistics (NBS), reflects a rigorous, data-driven process that aligns with international best practices and modern economic realities. The rebasing is not merely a technical recalibration but a crucial endeavour to present a more accurate and detailed representation of Nigeria’s economic landscape.
At its core, GDP rebasing involves replacing an old base year with a more recent one to account for changes in prices, consumption patterns, and the introduction of new products and services. For the 2024 rebasing, 2019 was chosen as the new base year, a decision guided by relative economic stability during that period and the availability of comprehensive data from major surveys. This approach adhered to the recommendations of the International Monetary Fund (IMF), which advised against using years marked by economic volatility, such as 2020, 2021, and 2022, due to the disruptions caused by the COVID-19 pandemic and other global economic challenges.
One of the standout features of the 2024 rebasing exercise is its emphasis on incorporating previously underrepresented and emerging sectors of the economy. Digital economic activities, the operations of pension fund administrators, and the contributions of modular refineries are now part of the GDP calculations. This broader coverage also extends to domestic households as employers of labor, quarrying, other mining activities, and even illegal and hidden activities, reflecting a more inclusive and realistic portrayal of economic activities. These additions highlight the NBS’s commitment to developing a comprehensive national socio-economic database.
The process of rebasing was anchored in the compilation of a detailed Supply and Use Table (SUT), which serves as the benchmark for recalibrating GDP. The SUT matrix, used for the Nigerian economy, encompasses 46 industries and 217 products, providing a granular breakdown of economic activity. This meticulous approach ensures that constant price estimates are calculated with a high degree of precision, enhancing the quality and reliability of economic data.
Collaboration played a pivotal role in the success of the rebasing exercise. The NBS worked closely with various Ministries, Departments, and Agencies (MDAs), including the Federal Ministry of Communications and Digital Economy, the Ministry of Marine and Blue Economy, and the National Pension Commission, among others. These partnerships facilitated enhanced data collection and ensured the inclusion of critical economic activities. Special studies were also conducted to capture data on areas such as research and development, water supply, waste management, and trade margins, further enriching the dataset.
The differences between the 2024 rebasing and previous exercises are profound. The inclusion of new data sources, the application of modern international statistical standards such as the 2008 System of National Accounts, and the use of advanced classifications like ISIC 4.0 and CPC 2.0 have set a new benchmark for statistical accuracy in Nigeria. The results are expected to reveal significant changes in the size and structure of the economy, with implications for key economic indicators such as the tax-to-GDP ratio, debt-to-GDP ratio, and per capita income.
Beyond the technical achievements, the implications of the rebasing are far-reaching. Policymakers will gain a clearer understanding of the economy’s composition, enabling more informed decisions on fiscal and monetary policies. The private sector will benefit from enhanced data that can guide investment strategies, while international stakeholders will have access to updated and credible statistics that improve Nigeria’s standing in the global economic arena.
The success of the 2024 GDP rebasing underscores the importance of a coordinated national statistical system and the need for sustained commitment from all stakeholders. The NBS has once again demonstrated its role as the authoritative source of official statistics in Nigeria, leveraging cutting-edge methodologies and collaborative efforts to produce data that reflects the realities of a dynamic and evolving economy. As the results are unveiled, they promise to provide not only a clearer picture of Nigeria’s economic trajectory but also a solid foundation for strategic planning and sustainable development in the years to come.
The 2024 rebasing of Nigeria’s Gross Domestic Product (GDP) is a pivotal effort by the National Bureau of Statistics (NBS) to update the base year used in economic measurements, moving from the outdated framework to a more recent one rooted in 2019. This recalibration is aimed at accurately reflecting changes in economic structure, consumption patterns, and the introduction of new products and services. By adopting international standards such as the 2008 System of National Accounts and using advanced classification systems, the exercise integrates previously overlooked sectors like digital economy activities, modular refineries, and domestic household labour.
Through extensive data collection, including input from national surveys and collaborations with key government agencies, the rebasing effort also incorporates hidden and informal economic activities. The resulting data provides a granular view of the economy via the detailed Supply and Use Table (SUT), which encompasses 46 industries and 217 products. This ensures more precise constant price estimates and sets a benchmark for future economic assessments.
The rebasing exercise is justified by the dynamic nature of economies, as changes in consumption, the introduction of new sectors, and structural shifts demand periodic updates to GDP calculations. The use of 2019 as the base year is a well-considered decision based on economic stability and the availability of comprehensive data, avoiding years of volatility like 2020–2022. Furthermore, the incorporation of underrepresented sectors and advanced methodologies enhances the accuracy and inclusivity of economic measurements.
The 2024 GDP rebasing marks a significant leap in Nigeria’s statistical infrastructure, providing a clearer and more comprehensive understanding of the nation’s economy. The results will redefine the size and structure of the economy, offering policymakers, private investors, and international stakeholders’ robust data for informed decision-making. This exercise underscores the critical role of collaborative efforts and adherence to international standards in shaping reliable economic statistics for sustainable growth and development.
■ Manson sent this piece from Yenagoa, Bayelsa State.
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