The National Bureau of Statistics (NBS) officially rebased Nigeria’s Gross Domestic Product (GDP), adopting 2019 as the new base year to better reflect the structure and composition of the economy.
The rebasing exercise, the first since 2014, updated the measurement framework to include emerging sectors, such as digital services, pension funds, and fintech, while improving coverage of informal sector activities.
The rebased estimates provided a more accurate and contemporary snapshot of the economy, allowing for better-informed policy decisions.
Following the rebasing, real GDP grew by 3.38% year-on-year in 2024, up from the 3.04% recorded in 2023, indicating growth in economic activities.
The rationale for the rebasing includes factors such as the perceived stability of economic conditions in the year 2019, as well as the inclusion of new economic activities.
Post-rebasing growth was led by the services sector, with a 4.43% growth rate, followed by industries at 2.80% and agriculture at 1.69%.
The rebased nominal GDP rose to ₦372.82 trillion, reflecting an 18.72% year-on-year increase, driven by both price changes and increased economic output.
While the services sector continues to expand, it predominantly absorbs skilled urban labour, leaving the vast employment potential of agriculture underutilised.
The poor performance of agriculture, despite its ability to generate mass employment across rural and urban areas, highlights the urgent need for the government to prioritise the sector through targeted funding, infrastructure development, and technological modernisation.
Strengthening agriculture enhances food security and offers a viable path to inclusive growth, given the country’s large youth and rural population.
Moreover, the rebased GDP also lowered Nigeria’s debt-to-GDP ratio, presenting an opportunity for the government to reallocate fiscal space toward productive, employment-intensive sectors, such as agriculture.
(cseaafrica.org)
