The Federal Government is set to review the country’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by 2025 to improve policy accuracy and boost investor confidence.

This was revealed in a statement issued on the official X account (formerly Twitter) of the Ministry of Finance following a meeting between the Statistician General of the Federation, Adeyemi Adeniran, and his team.

According to the ministry, Adeniran met with Minister Wale Edun to take stock of the ongoing CPI and GDP reshuffle.

The ministry further announced that validation and launch are planned for early 2025.

“The Statistician General of the Federation, Prince Adeyemi Adeniran, and his team met with the Honorable Minister of Finance and Coordinating Minister for the Economy, Mr. Wale Edun, at the Finance Headquarters earlier today to present an update comprehensive update on the ongoing shake-up of the Consumer Price Index (CPI) and Gross Domestic Product (GDP).

“Scheduled to be validated and launched in early 2025, these updated frameworks are expected to strengthen Nigeria’s economic management systems and consolidate its position as a leading economic force in Africa,” the ministry said.

Economic benefits of relining

As a result, the ministry said the rebasing effort would also bring economic benefits to the country.

He stressed that this update would boost investor confidence by providing a clearer and more reliable picture of the economy.

Furthermore, the Wale Edun-led ministry noted that the exercise would improve global comparability by aligning Nigeria’s economic indicators with international standards.

“Rebasing the CPI and GDP promises substantial economic benefits, including greater policy precision through more accurate fiscal and monetary data, increased investor confidence through a clearer and more reliable representation of the economy, and better global comparability by aligning Nigeria’s economic indicators with international indicators. standards,” adds the press release.

What you need to know

Discussions are ongoing on the need to rebase Nigeria’s gross domestic product (GDP) data to better reflect the informal sector.

Nigeria’s informal sector, which is only weakly reflected in GDP, is estimated to contribute about 60% of the country’s economic activities.

• Rebasing GDP and inflation data involves changing the methodology used to calculate these figures, a move that should improve the accuracy of policy decisions.
• Interestingly, under the current methodology, Nigeria’s GDP has fallen significantly in monetary terms, dropping the country from its previous rank of 1st in Africa to 4th place.
• In 2023, the Nigerian Bureau of Statistics (NBS) updated its unemployment data methodology to include casual and self-employed workers. This change led to a significant drop in the unemployment rate from 33.3% to around 5%.
• Although this adjustment has been criticized for not reflecting the true unemployment situation in Nigeria, the NBS has defended its position, saying the methodology aligns with global best practices.

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