
The National Bureau of Statistics (NBS) is finalising the process of rebasing Gross Domestic Product (GDP) estimates for Nigeria.
Rebasing GDP involves replacing an outdated base year with a more recent one to better reflect the current structure and dynamics of the economy. A base year serves as the benchmark against which subsequent GDP values are evaluated.
GDP rebasing is a standard statistical practice employed by national statistics offices worldwide. By doing so, national account figures are ensured to reflect the economy as accurately as possible. According to the United Nations Statistical Commission, nations should re-evaluate or rebase their national accounts and GDP every five years.
Currently, Nigeria’s base year for GDP is 2010, established during the last rebasing exercise in 2014. With the upcoming rebasing, the price and weight structure for GDP measurement will be updated to reflect the year 2019.
Although GDP rebasing is a sound economic strategy that equips governments with tools to address critical issues such as job creation, poverty alleviation, and economic growth, it is important to consider its broader implications.
These implications are particularly significant in an economy facing persistent challenges such as gender inequality, poverty, youth unemployment, and insecurity.
Concerns have also been raised about potential misinterpretations of Nigerians’ economic well-being and income levels. This recalls the controversy surrounding Nigeria’s economic rise following the 2014 rebasing exercise, which shifted the base year from 1990 to 2010.
That exercise resulted in a GDP increase to $509 billion, making Nigeria the largest economy in Africa and the 26th largest globally, surpassing South Africa’s $350 billion GDP at the time. The 2025 base year adjustment will mark Nigeria’s second GDP rebasing exercise.

According to the United Nations System of National Accounts (UN SNA)-2008, the base year of the Gross Domestic Product (GDP) series, needs to be revised from time to time to better capture structural changes in the economy.
Following this, some African countries have rebased their GDP at different times.

What GDP rebasing can do for Nigeria
According to the United Nations Development Programme, Rebasing incorporates new data sources, methodologies, and emerging economic sectors to align GDP calculations with current market realities.
This provides policymakers and businesses with a clearer understanding of the economy’s size and composition, enabling more informed decisions. For example, updated GDP figures allow for a more realistic assessment of sectoral contributions, leading to better-targeted policies and resource allocation.
Additionally, GDP rebasing directly impacts several economic metrics expressed as proportions of GDP, such as fiscal deficits and debt-to-GDP ratios. Typically, a higher GDP lowers these ratios, presenting a more favourable fiscal outlook.
Beyond fiscal management, rebased GDP figures support development planning by revealing growth trends across various sectors. Governments can use these insights to allocate resources efficiently, target high-growth industries, and address economic gaps.
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.
Although rebasing has many benefits, there are also disadvantages. Higher GDP figures, for instance, can be criticised and prompt calls for greater fiscal restraint or transparency. Furthermore, long-term economic comparisons may become more challenging due to discrepancies between rebased data and historical indicators.
The quality of GDP estimates is directly tied to the recency of the base year. According to World Economics, outdated base years result in less accurate GDP estimates, emphasising the importance of timely rebasing exercises.

The NBS has also announced that illegal and informal activities such as prostitution and drug peddling will now be included in GDP calculations. While this inclusion aligns with international practices, it has sparked debates over the ethical and social implications of such measures.
It must be noted that even though these informal activities offend many and may be against the law, they are nevertheless voluntary economic transactions between willing participants.
The decline of ATMs
Within the last few months, Deposit Money Banks (DMBs) in Nigeria have faced significant regulatory and operational challenges. These events include the imposition of a collective fine of N150 million on nine banks for Automated Teller Machine (ATM) cash scarcity by the CBN and the potential disconnection of nine banks from the Unstructured Supplementary Service Data (USSD) platform by the Mobile Network Operators (MNO).