Nigeria’s National Bureau of Statistics (NBS) announced plans to include illegal and hidden economic activities in its Gross Domestic Product (GDP) calculation.
This shift aims to provide a more accurate representation of the country’s economy, where black marketeering and corruption are widespread.
Moses Waniko, a senior NBS official, explained that activities such as prostitution, despite lacking legal backing, contribute significantly to income.
He argued that these sectors often surpass formal economic activities, impacting the overall economy.
Nigeria, currently Africa’s fourth-largest economy, was once the continent’s largest but has been surpassed by South Africa, Egypt, and Algeria.
The country last revised its GDP in 2010, and this update will consider 2019 as the base year.
The new calculation will incorporate sectors like the digital economy, health, pensions, and even household labor.
Waniko suggested that the rebased GDP would likely show a larger economy, potentially reducing Nigeria’s debt-to-GDP ratio and increasing per-capita income.
The contribution of the oil sector has diminished, now ranking fifth, while real estate has risen to third place after agriculture and trade.
