FG Adopts Global Best Practices For CPI, GDP Rebasing, NLSS

Muhyideen Jimoh
Sep, Sat, 2024

General News

FG adopts global best practices for CPI, GDP rebasing, NLSS

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By Okeoghene Akubuike

The Federal Government has reaffirmed plans to adopt global best practices in rebasing the Consumer Price Index (CPI), Gross Domestic Product (GDP), and conducting the Nigeria Living Standards Survey (NLSS).

Dr Vitalis Obi, Permanent Secretary, Ministry of Budget and Economic Planning, made this commitment at a dialogue with experts on Friday in Abuja.

Obi said that rebasing the GDP and CPI using global best practices would provide a more accurate picture of the economy, including emerging technologies, and enable policymakers to formulate effective policies.

He explained that the process involved updating the base year and adjusting weights used in computations.

Obi said the NLSS captured household consumption and welfare conditions.

He said that updating the basket of goods and services used in calculating CPI would improve understanding of inflation trends, informing monetary and price stability.

Obi highlighted significant structural changes in various sectors since the last rebasing exercise in 2014, including rapid growth in technology and digital sectors: fintech, e-commerce, and digital services

“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.”

Obi stated that the agricultural sector had experienced significant growth, marked by the emergence of new value chains, agribusinesses, and commodity exchange, alongside advancements in renewable energy.

Additionally, he said the entertainment and creative industry had expanded, notably with the rise of skits, and Nollywood and music production gaining widespread international recognition.

“There is also a shift into the Marine and Blue economy, as well as growth in real estate.

“The rebasing of the Consumer Price Index (CPI) and Gross Domestic Product (GDP) will capture these sectorial shifts and place the Nigerian economy on the right trajectory.

“The rebasing will assist all levels of government in controlling and coordinating economic and social activities, achieving development goals and aspirations for citizens.” Obi stated.

Prince Adeyemi Adeniran, Statistician-General of the Federation, noted that the NLSS survey, conducted every four to five years, generated national poverty headline rates and other household welfare indicators.

“The previous survey, conducted in 2018/2019 and published in 2020, revealed a poverty rate of 40.1 per cent.”

Adeniran emphasised that the current workshop aimed to inform experts, users, and stakeholders about the survey methodology and gather their input and advice.

“The ultimate goal is to ensure that the approaches used in implementing the NLSS and rebasing the GDP and CPI are sound, aligned with international best practices, and relevant to the Nigerian context.

“This gathering of experts represents a key segment of data users, vital for research, policy design, and programme monitoring.

“Your input will significantly enhance the robustness and comprehensiveness of the NLSS survey and rebasing processes.

“Upon completion, critical stakeholders will be invited to a validation session to review and deliberate on the preliminary results before their final public release.” (NAN)

Edited by Abiemwense Moru

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