The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, urges the Nigerian government not to use the rebasing of the Gross Domestic Product (GDP) to minimize the country’s economic difficulties.
Speaking at a press briefing in Lagos, Ajayi-Kadir acknowledges that the National Bureau of Statistics (NBS) revises Nigeria’s GDP calculations, adopting 2019 as the new base year instead of 2010. This adjustment means that constant prices, previously based on 2010, now reflect 2019 data.
While he welcomes the GDP rebasing as a necessary economic update, he warns against its misuse as a political tool that could misrepresent the true state of the economy.
Ajayi-Kadir also raises concerns about the inclusion of illicit trade in GDP assessments, cautioning that factoring in activities such as smuggling and kidnapping could create the impression of legitimizing illegal economic activities.
“The rebasing exercise brings up concerns about assessing informal and illicit sectors. While money circulates in these areas, their inclusion must be handled cautiously to avoid legitimizing illegal practices,” he states.
Ajayi-Kadir emphasizes that MAN collaborates with the NBS to ensure accurate economic assessments.
“We support a correct evaluation of Nigeria’s GDP. We respect the expertise of the NBS, but if we have concerns, we will engage them constructively. Reliable data is essential for assessing economic trends and making informed policy decisions,” he says.
Key Takeaways from Nigeria’s GDP Rebasing
- The NBS implements GDP rebasing, reflecting the changes in recent reports on economic growth and inflation.
- The real estate sector becomes the third-largest sub-sector in Nigeria’s economy, moving up from fifth place.
- The rebasing reshuffles Nigeria’s leading industries, with grain crop production and trade maintaining their top positions, while real estate overtakes crude oil and natural gas to become the third-largest sector.
The GDP rebasing offers a more updated economic perspective, but industry experts stress the need for it to accurately reflect Nigeria’s financial realities rather than serve as a tool to mask economic challenges.
, Segun Ajayi-Kadir, urges the Nigerian government not to use the rebasing of the Gross Domestic Product (GDP) to minimize the country’s economic difficulties.){kind=link}