Analyzing the Benefits of GDP Rebasing in Nigeria
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By Ewache Ajefu
The recent Rebasing of Nigeria’s Gross Domestic Product(GDP) has thrown up several discussions both in the media and other fora.
The discussions following the Rebasing are however necessary because both economic commentators and citizens need to know the policy direction of government vis-a-vis the health of the national economy.
Nigeria has witnessed several GDP rebasing in the past. The one of 2014 and the most recent, which is this year, 2025.
However, the process involves changing the base year used to calculate the country’s economic output.
The development will assist in making sure that the GDP accurately reflects the country’s economic activities.
GDP is the totality of monetary value of final goods and services produced within a country over a specific period.
So, it has become necessary to make periodic recalculations in order to capture an accurate snapshot of the economy, because over time, changes in prices, consumer behaviour, industry trends and economic structure affect GDP.
Therefore, Rebasing encapsulates recalibrating GDP figures to reflect these changes by replacing an outdated base year with a more recent one.
In the current instance, the National Bureau of Statistics (NBS) has replaced the current base year of 2010 with 2019 to better reflect Nigeria’s economic reality.
Nigeria’s apex Statistical Agency in a recent statement emphasised the importance of the rebasing exercise in providing accurate data for evidence-based decision-making.
Statistician General of the Federation and arrow head of the National Statistical system, Prince Adeyemi Adeniran in a recent forum explained the rationale, stressing that “Economies, as you know, undergo structural changes over time—for example, the growth of the tech sector and the decline of traditional manufacturing.
He noted that the rebasing exercise helps account for these shifts, offering a more accurate snapshot of the economy’s composition.
He posited that the updated figures will help the government identify growth-driving sectors and efficiently allocate resources to areas with the greatest potential.
He added that armed with robust data, the government will be in a better position to “grow the economy, create jobs, improve infrastructure, and reduce poverty
Several analysts are of the opinion that the GDP rebasing came at the right time considering Nigeria’s current economic position and the need for accurate data for policy directions.
Analysts Adijat Kareem and Lucy Okonkwo of Dataphyte in their recent report posited that “GDP rebasing directly impacts several economic metrics expressed as proportions of GDP, such as fiscal deficits and debt-to-GDP ratios’.
According to them, a higher GDP lowers these ratios, presenting a more favourable fiscal outlook.
They are of the believe that beyond fiscal management, rebased GDP figures support development planning by revealing growth trends across various sectors.
Apart from the above, Governments can use these insights to allocate resources efficiently, target high-growth industries, and address economic gaps.
The report added that rebasing often results in a shift in a country’s position in the global economy. A country’s standing in economic blocs or alliances and its impact in global discourse can both be improved by a rise in GDP.
Rebasing Nigeria’s GDP can significantly lead to improved investment attraction, better policy targeting, enhanced global perception, and a potential boost in foreign direct investment, often resulting in a higher ranking in the global economy when the rebased GDP is larger than previously reported.
It would be however stated that the impact is primarily statistical and may not immediately translate to tangible changes in everyday life for citizens.
While Nigeria should not bask in the euphoria of the potential benefits arising from the rebased GDP figures, there is urgent need
for complementary policies.
The reason is simple: Rebasing alone is not enough to drive economic development; it must be accompanied by sound economic policies to fully realize the potential benefits.
