Nigeria News

Nigeria to rebase GDP to determine structure of economy

ABUJA, Feb 3 (Reuters) - Nigeria plans to rebase its gross domestic product in an effort to determine the current structure of its economy, according to a statement from the National Bureau of Statistics (NBS).

The last time Nigeria rebased, in 2014, it found that the economy was around 60% bigger than it had been reporting. The change pushed it ahead of South Africa to become the continent’s largest economy.

The NBS will change the base year for calculating Nigeria’s GDP to 2018/2019 from 2010, the statement said. In 2014, it changed the base year to 2010 from 1990.

It said the ongoing survey of nationwide businesses would enable it to determine the structure of its economy, the sectors that drive growth and the sectors that require government intervention to improve.

Most governments overhaul GDP calculations every few years to reflect changes in output and consumption. Prior to 2014, Nigeria had not done so since 1990.

Amaka Anku, Africa director at Eurasia Group, said the rebasing was likely to increase the size of Nigeria’s economy in dollar terms despite its entry to a second recession in five years and a weakened naira.

“They’ll be adding new components to the GDP so it would likely result in a larger economy, but definitely not as big a bump as in 2010,” Anku said in an email. (Reporting By Camillus Eboh, additional reporting by Libby George in Lagos and Chijioke Ohuocha in Abuja. writing by Libby George; Editing by Steve Orlofsky)