The National Bureau of Statistics (NBS) has announced plans to include illegal and hidden activities such as prostitution and drug peddling in the calculation of Nigeria’s Gross Domestic Product (GDP).
This disclosure was made at a sensitisation workshop on GDP and Consumer Price Index (CPI) rebasing, organised in collaboration with the Nigerian Economic Summit Group (NESG).
Speaking at the event, the Statistician General of the Federation, Prince Adeyemi Adeniran, explained that the rebasing exercise is critical for ensuring accurate economic indicators.
He stated: “Rebasing our GDP and CPI allows us to align with economic transformations, providing a precise and relevant picture of Nigeria’s economic landscape. This process is foundational to informed policymaking, strategic planning, and effective governance.”
NBS proposed 2019 as the new GDP base year, citing the relative economic stability before disruptions caused by the COVID-19 pandemic and policy changes. For inflation computation, 2024 was proposed as the new base year.
Dr Baba Madu, Head of National Accounts at the NBS, elaborated on the inclusion of illegal activities, aligning with international best practices under the System of National Accounts (SNA) 2008.
He said: “Illegal activities will be in line with the national best practices, that is, SNA 2008. If you are into, for instance, drugs, there are some countries where this drives their economy. It is illegal here because there is no legal backing. Also, prostitution—they earn income, and some even live bigger than those in the formal sector. The SNA does not say no to these.”
He highlighted challenges in collecting data on hidden activities, noting: “If I ask you how much you earn, you will lower your income. Or if someone is selling provisions and later starts selling Indian hemp, those are hidden activities. But the beauty is they are less than 3.0 to 3.5 per cent of the GDP.”
Chief Executive Officer of NESG, Dr Tayo Aduloju, highlighted the benefits of GDP rebasing, noting how Nigeria’s debt-to-GDP ratio dropped from 19 per cent to 11 per cent after the 2014 rebasing.
“Accurate data enhances credibility. Investors are drawn to transparency and growth potential, and rebasing sends a clear message: we understand our economy, and we are open for business,” he said.
He added that rebasing sharpens policymaking and drives balanced development, citing Ghana’s 2010 rebasing as a reference point for strategic planning and investment.
The NBS assured that the rebasing process is being conducted with professionalism to reflect the current economic realities in Nigeria.
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