The federal government plans to rebase Nigeria’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by 2025.
This move aims to improve policy accuracy and restore investor confidence.
The announcement was made by the Ministry of Finance on its official X account, formerly known as Twitter.
The disclosure followed a meeting between Statistician General Adeyemi Adeniran and Minister of Finance Wale Edun.
Rebasing involves updating the methodology used to calculate GDP and inflation figures.
Officials believe the new data will better capture economic activities in the informal sector.
The informal sector is a significant part of Nigeria’s economy, contributing about 60% to national output.
However, experts and commentators have expressed mixed reactions to the rebasing plan.
Some critics argue that rebasing without addressing deeper structural issues is unproductive.
“Rebasing the economy against the unproductive informal sector doesn’t make any sense,” one critic commented.
Nigeria’s GDP has been declining in dollar value under the current methodology.
This decline has seen the country fall from the top position in Africa’s GDP ranking to fourth place.
The planned rebasing is expected to provide a clearer picture of the economy.
It may also boost investor confidence, as accurate data is crucial for making informed decisions.
However, skepticism remains about how much change the new methodology can achieve.
A similar debate arose in 2023 when the National Bureau of Statistics (NBS) adjusted its unemployment data methodology.
The NBS included casual workers and self-employed individuals in its calculations.
This change drastically reduced the reported unemployment rate from 33.3% to about 5%.
The adjustment drew widespread criticism for misrepresenting the reality of Nigeria’s job market.
Critics accused the NBS of painting a false picture of economic recovery.
Defending its decision, the NBS stated that the revised methodology aligns with global standards.
Despite this defense, many Nigerians remain unconvinced, citing high joblessness and underemployment across the country.
The informal sector, which includes small-scale traders, artisans, and unregistered businesses, plays a vital role in Nigeria’s economy.
It supports millions of households but often lacks proper documentation in national statistics.
Rebasing could potentially give more visibility to these activities, offering insights into their economic contributions.
But experts warn that relying on the informal sector without addressing its inefficiencies could be counterproductive.
“Nigeria must prioritize formalizing this sector instead of just measuring it better,” an economist noted.
Policymakers are expected to leverage the new data to create targeted interventions.
Yet, concerns persist that rebasing may merely mask underlying economic challenges.
Nigeria has struggled with high inflation, foreign exchange volatility, and a declining standard of living.
Critics argue that rebasing GDP or CPI without solving these problems is like “redecorating a collapsing house.”
In the meantime, the government insists that the rebasing exercise will bring long-term benefits.
