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Nigeria’s economy is about 30 percent larger than before after the West African nation has updated the method with which GDP is calculated, the first re -cheering of its statistical model in more than a decade.
Nigeria’s 2024 GDP is now on N372.82TN ($ 244 billion) at the current prices, an increase in $ 187.76 billion estimated by the World Bank, after the country’s National Bureau of Statistics has changed the base year from 2010 to 2019. This was done for previously excluded sectors such as a Booming Digital Services, Pension Funds and the Informal Labor Market, which has changed most Niger -RESIDUEN of the informal labor funds and the informal labor market, which have changed the most Niger -Residuen of the informal labor funds and the Informal Labor market, those that of the those of the Labor Market, which are the those of the Labor Market, that of the people of the Labor Market, that of the RESERIGER -RESIGENTIENTIENS, that of the RESERIGIENS -RESERIDIENTIENTIENTIENTIENTIENTIENTIENTIENTIENTIENTS, that of the Labor Market -of the Labor Market Niger -Residuen of the informal labor market and the informal labor market has changed, which has changed the most Niger -Residuen of the informal labor market.
Development experts are encouraged by development experts to regularly rebase their economies to better conquer the size of their national output and to produce economic data that reflect their budding economies.
Nigeria, the most densely populated nation in Africa, brought his GDP to the Rebed for the last time in 2014. At that time, the change was able to surpass South Africa to become the largest economy of continent, although it lost that crown in 2023.
After the last rebasing, Nigeria’s economy remains the fourth largest on the continent, behind South Africa, Egypt and Algeria.
“The rebase exercise was current,” says Michael Famoroti, an economist and head of research at data company Stears in Lagos.
“It is usually good to do this every 10 years, especially in developing countries when the economy can change quite a bit. Add the turnout in the digital economy in that period and we needed an updated image of the economy.”
Famoroti said that the exercise had shown that a change in the composition of the Nigerian economy was well underway, with agriculture its place firmly as the biggest contribution to the national output and crude oil “hardly” contributed to 5 percent.
The rebasing ensures that certain statistics, such as the debt Bbp ratio of the country, seem healthier. Nigeria’s debt / BDP ratio was 52 percent before the model change, but is now around 40 percent. That is the same level as the self -imposed 40 percent of the government and lower than the 55 percent level encouraged by the World Bank and the IMF.
“My concern is that the higher GDP figure will encourage the government to be laxer with its debt sustainability,” added. “The debt-to-BDP ratio has already decreased here. But that is unfortunately only the situation masking.”
Adeyemi Adeniran, head of the NBS, described the rebasing as the “most extensive” ever performed by the desk during a press conference in the capital Abuja. “Digital activities, pension fund managers and the informal sector activities, where more than 90 percent of Nigerians are employed, are now being measured,” he said.
Nigeria lost his status as the largest economy in Africa in 2023 after President Bola Tinubu had devoted his currency to display his actual value and to withdraw foreign investments. The Naira has lost more than 70 percent against the US dollar since the measure has been taken.
Last week, the Ministry of Finance of Senegal said that it would soon be Rebase for the first time since 2018, in the midst of a scandal about hidden loans that threatens to threaten his debt burden far over the current size of his economy.
“Rebasing could improve the debt/GDP, along with constant strong economic performance,” said the analysts of Bank of America. “As such, the authorities can find this option attractive to solve problems around the debt shares.”
Senegal’s dollar bonds have been collected since the announcement. The GDP of the Western African country currently uses 2014 as a base year.
Last year the IMF suspended a rescue operation for Senegal after billions of dollars in debts had been reported incorrectly. The fund is waiting for the results of an investigation into the scandal.
