₦airaland Forum

Rebasing the economy against the unproductive informal sector doesn't make any sense

There has been an ongoing conversation about rebasing Nigeria’s gross domestic product (GDP) data to better capture the informal sector.

The federal government is set to rebase the country’s Consumer Price Index (CPI) and Gross Domestic Product (GDP) by 2025 to enhance policy accuracy and boost investor confidence.

This was disclosed in a statement on the official X (formerly Twitter) account 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 provide a comprehensive update on the ongoing rebasing of the CPI and GDP.

There has been an ongoing conversation about rebasing Nigeria’s gross domestic product (GDP) data to better capture the informal sector.

According to estimates, Nigeria’s informal sector, which is only faintly reflected in the GDP, contributes about 60% of the country’s economic activities.

Rebasing GDP and inflation data involves changing the methodology used to calculate these figures, a move expected to enhance accuracy in policy-making decisions.
Interestingly, under the current methodology, Nigeria’s GDP has dropped significantly in dollar value, causing the country to slip from its previous rank as 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 about 5%.

While this adjustment has faced criticism for not reflecting the true unemployment situation in Nigeria, the NBS has defended its position, stating that the methodology aligns with global best practices.

https://nairametrics.com/2024/11/16/fg-to-rebase-inflation-gdp-data-in-2025-to-drive-policy-accuracy-investment/

Foolish tiefnubu..he is reading my comments.

Why will he act now after taking the back seat.

Hmmm. Who rebase epp?

This is exactly what Jonathan did that suddenly turned Nigeria to the highest GDP in Africa then.

In the first instance, why should the informal sector be excluded in the computation of GDP? Why should the activities of POS operators, Land agents, market women, spare parts dealers, Mama put etc be excluded.
The critical point here is that it must comply with International template and should be verifiable.

LegendHero:
This is exactly what Jonathan did that suddenly turned Nigeria to the highest GDP in Africa then.

Misleading information (Propaganda) Alert!‼️

Governments of OBJ, Yar’adua, and GEJ significantly grew certain sectors of the Nigerian economy and GEJ’s government captured these sectors which were not previously captured in our GDP. The sectors they added include Telecom and ICT, Entertainment and Media (including content creators), E-commerce, Real Estate and Construction, Financial Services like Banking and insurance, Hospitality and Tourism (Hotels, restaurants, tourism), Transportation (including Air travel).

TPain hasn’t done anything new except make people poorer so what they’re trying to do is spend a lot of tax payers’ money to rebase the economy and include activities like street hawking, artisans like tailors, domestic work like house cleaning etc.

No be juju be that?

Lifestone:
In the first instance, why should the informal sector be excluded in the computation of GDP? Why should the activities of POS operators, Land agents, market women, spare parts dealers, Mama put etc be excluded.
The critical point here is that it must comply with International template and should be verifiable.

Even the social media space should be counted. We have lot of content creators making madd money and they employ lot of people too.

LegendHero:
Even the social media space should be counted. We have lot of content creators making madd money and they employ lot of people too.

Content creators were captured in 2014 under Entertainment and Media

TPain is trying to spend a lot of tax payers’ money to capture activities like street hawking and so on. I won’t be surprised if they end up adding online begging/scamming and insurgency as part of informal economic activity because those are the only activities which have grown significantly since 2015

Has Tinubu created a single job since coming on board as president of Nigeria?

sulaak:
Rebasing the economy against the unproductive informal sector doesn't make any sense /

But it made sense when Okonjo Iweala did it.

Bitter soul. Did you people consider production when you're comparing our Gdp to that of other countries or even years before?

Can't you see Nigeria understand better now

Consider the results of election in Edo and Ondo state. LP is no more a contestant but a mere spectator.

LegendHero:
This is exactly what Jonathan did that suddenly turned Nigeria to the highest GDP in Africa then.

Lmaooo funny

Redefine unemployment
Revase the economy

Under Jonathan people where buying new cars... Lectures were earning as much as 30k dollars yearly

Oil companies workers earned over 70k yearly for a start

Even teachers where earning 15k to 20k dollars yearly

The reality was a progressive economy n people saw it

Statistical mago-mago.

givedemwotowoto:
Misleading information (Propaganda) Alert!‼️

Governments of OBJ, Yar’adua, and GEJ significantly grew certain sectors of the Nigerian economy and GEJ’s government captured these sectors which were not previously captured in our GDP. The sectors they added include Telecom and ICT, Entertainment and Media (including content creators), E-commerce, Real Estate and Construction, Financial Services like Banking and insurance, Hospitality and Tourism (Hotels, restaurants, tourism), Transportation (including Air travel).

Buhari and TPain haven’t done anything new except make people poorer so what they’re trying to do is spend a lot of tax payers’ money to rebase the economy and include the informal sector, like street hawking, artisans like tailors, domestic work like house cleaning etc.

No be juju be that?

The person you're explaining all these to is an APC internet hireling. He's here to spread pro government propaganda . So he knows the truth but just wants to stand the truth on its head.

Nice

Wow! They are changing the parameters for calculating unemployment hahaha. You have to give it to this administration. They sure are creative.

Rebase what?

MadPolitician:
The person you're explaining all these to is an APC internet hireling. He's here to spread pro government propaganda . So he knows the truth but just wants to stand the truth on its head.

I know. I wasn’t explaining to him. I was explaining to readers that saw his screenshot

davidif:
Wow! They are changing the parameters for calculating unemployment hahaha. You have to give it to this administration. They sure are creative.

The result won't change much. People are really poor. The only places that seem as though life is good are Lagos and Abuja. The remaining 35 states? They are surviving, not living!

They probably want to capture street hawkers as employed persons, forgetting that just 2 years ago, many of these poor street hawkers were working in places where they earned living wages. Now? They are just slightly better than beggers

All what they know how to do is to manipulate statistics to favor their propaganda. You can grap it, snatch it, and run with it to occupy ASO rock, but when economic reality sets in, you'll keep dishing out more propaganda to deceive your gullible followers. Every sane person knows that Nigeria is in severe economic depression due to the corrupt and incompetent leadership. Now it's about rebasing GDP when they have no true developments to show for it.

sulaak:
Rebasing the economy against the unproductive informal sector doesn't make any sense





https://nairametrics.com/2024/11/16/fg-to-rebase-inflation-gdp-data-in-2025-to-drive-policy-accuracy-investment/

The informal sector is not unproductive. A farmer for instance is within the informal sector but some of his products may end up in UK, as a meal to a Nigerian family in UK and earns the country forex.
A plumber helping me build my house is in the informal sector but I still send money in dollars when I want to pay him.
Nigeria's economy is worth much more than Wikipedia shows bro

Men the country really destroyed. 2008/2009 kia rio tear rubber was 1.5 million. It was what they were using to do cab in Benin city. I still remember when it move to 2m then later 2.5m.

During that time 15k usd is around 1.5m. That amount can get you new car.

But today I doubt if 30m can get you any new kia.

Devaluation of the currency in any guise is a big and costly mistake. Floating or tempering with exchange rate is a no go area. Foreign Bag of rice 8k is what they are selling now 120k

Some fools said Nigerian bond and stock have grown from what it used to. that was when I knew tinubu administration is very useless and have very dull online supporters. The bond and stock is experiencing inflation and they call it growth.

A tuber of yam selling for N500 naira before, the same tuber is now selling for N5000 is that growth or inflation?

LegendHero:
This is exactly what Jonathan did that suddenly turned Nigeria to the highest GDP in Africa then.

The same Jonathan you people would’ve killed if given the chance is now the yardstick 😂😂

Tinubu is a disgrace to Southern Nigeria.
The North will be laughing at us.
.

koxyz:
Statistical mago-mago.

Spot on

MadPolitician:
The person you're explaining all these to is an APC internet hireling. He's here to spread pro government propaganda . So he knows the truth but just wants to stand the truth on its head.

He’s not an economist .. not that he knows . They keep schooling him.. it he no just wa learn

So he keeps wobbling .. and his kind keeplikimg is post

Is ignorance

It won’t solve the problem of hunger and high prices

Do something about our fallen naira

To bring another gibberish economy lies to prove IMD is not working and claim everything is fine in preparation for 2027

Reality and Perception are felt differently.

Figures can be quite deceptive, it can be manipulated to suit a purpose.

What are the people truly feeling or experiencing?

LegendHero:
This is exactly what Jonathan did that suddenly turned Nigeria to the highest GDP in Africa then.

The signs were there even to the blind

Minimum wage could buy one and half bag of rice then.

Food was affordable then

Not now that it will take about 4months of minimum wage (30k) to buy one bag of rice. Now people are seriously struggling to feed. Middle class have been completely wiped off. Only poor and rich that now exists.

This rebasement will surely be downward just watch and see

Nigeria is in trouble under APC