THE National Bureau of Statistics (NBS) has disclosed that illegal and covert activities, including commercial sex workers and drug peddling, among other crimes will now be included in the calculation of the country’s Gross Domestic Product (GDP).
The NBS made the disclosure at a sensitization workshop on GDP and Consumer Price Index (CPI) Rebasing, organised in collaboration with the Nigerian Economic Summit Group (NESG).
The bureau said that the rebased GDP is expected to capture new segments, such as the digital economy, activities of Pension Fund Administrators (PFAS), National Health Insurance Scheme (NHIS), Nigerian Social Insurance Trust Fund (NSTIF), activities of modular refineries, domestic households as employers of labour and coverage of illegal and hidden activities.
Elaborating on the inclusion of illegal and hidden activities in the classification of economic activities for computation of the GDP, Head of National Accounts, NBS, Dr. Baba Madu, said “Illegal activities will be in line with the national best practices, that is System of National Accounts (SNA).
“If you are into, for instance, drugs, there are some countries where drugs are driving their economy. It is illegal here because there is no legal backing. Also prostitution, they also earn income. Some are even well-off than those in the formal sector. The SNA does not say no to these but the challenge is the legal backing and how to get the data.
“And then, of course, the hidden economy. If I ask how much one earns in a month, they will lower their income or if somebody is selling provision in a store and before you know it, he may start selling India hemp. Those are the things we are seeing. There are challenges all over the world but the beauty of it all is that they are less than 3.0 to 3.5 per cent of the GDP.”
Highlighting the importance of the GDP and CPI rebasing exercise, the Statistician-General of the Federation, Prince Adeyemi Adeniran said: “the rebasing is a vital exercise that ensures our economic indicators are current and accurate reflections of the economic realities on the ground. As economies evolve, new industries emerge, and consumption patterns shift, it becomes imperative to update our statistical measures to capture these changes. Rebasing our GDP and CPI allows us to align with these transformations, providing a more precise and relevant picture of Nigeria’s economic landscape. This process is foundational to informed policymaking, strategic planning, and effective governance; hence, it is one exercise that NBS is conducting with significant importance and professionalism.
