The Federal Government is reaffirming its commitment to adopting global best practices for rebasing the Consumer Price Index and Gross Domestic Product, as well as conducting the Nigeria Living Standards Survey.
This was disclosed by the Permanent Secretary of the Ministry of Budget and Economic Planning, Dr. Vitalis Obi during a dialogue with experts on Friday in Abuja, according to Nairametrics.
Dr. Obi noted that utilizing global standards will provide a more accurate representation of the economy and better account for the effects of emerging technologies.
He stated that this approach will empower policymakers to craft more effective economic strategies.
Obi further elaborated that the rebasing process includes updating the base year and adjusting the weights applied in these economic assessments, ensuring a more precise reflection of current economic conditions.
Obi highlighted its role in assessing household consumption and welfare conditions.
He stressed that updating the basket of goods and services for the CPI will improve insights into inflation trends, essential for ensuring monetary and price stability.
The permanent secretary noted significant structural changes since the last rebasing in 2014, especially the rapid growth of technology and digital industries, including fintech, e-commerce, and digital services.
He said, “You will recall that the last rebasing exercise in Nigeria was concluded in 2014. Before the exercise, the country’s GDP was approximately 270 billion dollars.
“The rebasing saw the GDP surge to 510 billion dollars, positioning Nigeria as Africa’s largest economy and ranking 26th globally.
“The number of sectors increased from 33 to 46, providing a more accurate economic picture.”
“These enabled policymakers to craft policies focused on job creation, poverty reduction, and informed investment decisions.
“Since then, Nigeria’s economy has undergone significant structural changes, particularly rapid growth in technology and digital sectors, including fintech, e-commerce, and digital services.”
the Statistician-General of the Federation, Prince Adeyemi Adeniran said the NLSS conducted every four to five years, produces national poverty headline rates and other indicators of household welfare.
He referenced the 2018/2019 NLSS, published in 2020, which indicated a poverty rate of 40.1 per cent.
Adeniran noted that the current workshop aims to educate experts, users, and stakeholders on the survey methodology while seeking their input and guidance.
He emphasized that the ultimate goal is to ensure that the methods used for the NLSS and in rebasing the GDP and CPI are robust, adhere to international best practices, and are tailored to the Nigerian context.
