NBS to include prostitution, other illegal activities in GDP calculation.

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The National Bureau of Statistics (NBS) has announced that it will include informal sector activities in the calculation of the country’s Gross Domestic Product (GDP). This move aims to capture a more comprehensive picture of Nigeria’s economy.

The NBS proposed 2019 as the new GDP base year, citing relatively stable economic activities compared to subsequent years affected by the COVID-19 pandemic and policy shifts.

According to the bureau, the rebased GDP will capture new segments such as the digital economy, activities of pension fund administrators, the National Health Insurance Scheme (NHIS), and the Nigerian Social Insurance Trust Fund (NSITF).

The NBS also plans to include activities of modular refineries, domestic households as employers of labor, and other informal sector activities in the GDP calculation.

Head of National Accounts, NBS, Dr. Baba Madu, explained that the inclusion of informal sector activities is in line with international best practices, as outlined in the System of National Accounts (SNA) 2008.

Dr. Madu acknowledged the challenge of obtaining data on informal sector activities but noted that they account for a significant portion of the economy.

The NBS emphasized the importance of rebasing the GDP and Consumer Price Index (CPI) to ensure accurate economic indicators, informed policymaking, and effective governance.

Statistician General, Prince Adeyemi Adeniran, highlighted the significance of the rebasing exercise, stating that it will provide a more precise and relevant picture of Nigeria’s economic landscape.

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