The National Bureau of Statistics (NBS) announced that it will now include illegal activities, such as prostitution and drug dealing, in Nigeria’s GDP calculation.
This move is part of an update that will also see the base year for GDP revised to 2019, with 2024 being proposed as the base year for inflation.
The NBS made these statements at a workshop on the rebasing of GDP and the Consumer Price Index, in partnership with the Nigerian Economic Summit Group (NESG).
According to the NBS, the addition of illegal activities is aligned with international standards, including the System of National Accounts 2008.
These activities, while unregulated, contribute to the economy in ways that are significant yet challenging to measure.
The rebased GDP will also capture emerging sectors like the digital economy and activities related to health and social insurance.
The NBS explained that 2019 was chosen as the new base year due to its stability, before the disruptions caused by the COVID-19 pandemic and policy shifts.
Credit: Vanguard
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