By- Moyofoluwa Ogunyemi
The Nigeria Economic Summit Group (NESG) has applauded the Raw Materials Research and Development Council (RMRDC) for its efforts at value addition to the nation’s raw materials before export. This commendation was made during a sensitization workshop organized by the Nigerian Economic Summit Group (NESG), in collaboration with the National Bureau of Statistics (NBS), on January 9, 2025, held at the NESG Summit House, Ikoyi, Lagos.
The workshop assembled stakeholders from diverse sectors of the economy, including the public sector and the Organized Private Sector (OPS). The objective of the workshop was to sensitize stakeholders on the importance of rebasing Nigeria’s Gross Domestic Product (GDP) and Consumer Price Index (CPI), two critical economic indicators vital for informed policy-making and strategic planning.
Amid discussions, the State Coordinator of the Lagos Coordination Office, Mr. Oluwasola Marinho, stressed that RMRDC is pivotal in Nigeria’s push for industrial development and economic growth. He informed participants that the Council was currently sponsoring a Raw Materials Processing and Local Production Protection legislative Bill to mandate at least 30% value-addition to primary raw materials before export. The Bill, which has already passed second reading in the National Assembly, aims to eliminate unnecessary exports and imports of products, encourage import substitution and reduce dependence on imports, enhance value-chain efficiency and boost the manufacturing sector.
In addition, Mr. Marinho show-cased the Council’s flagship initiative, the Raw Materials Information Management System (RMIMS), a centralized database designed to support manufacturers in sourcing and processing of local materials. He added that by providing real-time data on raw materials supply-chains, market trends and pricing, the RMIMS would foster efficiency, strengthen industrial growth and empower data-driven decision-making across sectors.
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Responding to the updates, the Head of National Accounts, NBS, Dr Baba Madu, commended the proactive efforts of RMRDC and called for strengthened collaborations between the two organizations to ensure the incorporation of data on localized economic activities, particularly those related to raw materials processing. Dr. Madu also highlighted the importance of integrating informal and hidden economic activities into Nigeria’s economic metrics. He noted that while these activities are often under-reported, they can significantly contribute to the economy. He emphasized that capturing the data requires robust methodologies and innovative approaches.
Earlier in his welcome address, the Director-General of the NESG, Dr. Taylor Aduloju, underscored the transformative power of accurate and reliable economic data. He explained that data credibility enhances investor confidence, signaling a commitment to transparency and economic growth. Dr. Aduloju emphasized how GDP and CPI rebasing provides a clearer view of economic realities, enabling governments to pinpoint high-growth sectors for expansion, while addressing low-performing areas. Highlighting global best practices, Dr. Aduloju, encouraged Nigeria to draw lessons from Asian economies that strategically utilize data-driven approaches to build economic resilience and inclusivity. “The NBS plays a critical role in our nation’s development. Data rebasing, therefore, presents an opportunity to re-assess our economic fundamentals and pave the way for sustainable growth. By drawing lessons from other nations, especially in Asia, we can align our strategies to build resilience and inclusivity into our economic policies,” Dr. Aduloju remarked.
While delivering his opening remarks, the Statistician-General of the Federation and CEO of the NBS, Prince Adeyemi Adeniran, discussed the significance of rebasing GDP and CPI. He explained that the process ensures economic indicators accurately reflect structural changes in the economy, evolving consumption patterns, and emerging sectors. In his words, “Rebasing is a crucial process that ensures our economic indicators are up-to-date and accurately reflect the realities of our economy. As economies evolve with the emergence of new industries and shifts in consumption patterns, it is essential to update our statistical measures to capture these changes. By rebasing our GDP and CPI, we provide a clearer and more relevant picture of Nigeria’s economic landscape. This exercise is fundamental for informed policy-making, strategic planning and effective governance and the NBS is conducting it with the utmost professionalism and significance.”
Prince Adeniran assured stakeholders that the NBS employs global best practices in its methodology and highlighted objectives of the rebasing exercise, including the inclusion of new sectors, updated consumption data and enhanced transparency. Prince Adeniran also stressed that outdated data can misrepresent economic realities, but the rebasing initiative aims to address this gap.
Presentations during the workshop highlighted the technical and economic implications of rebasing. Mr. Moses Wanniko, a data analyst at the NBS, explained that GDP rebasing updates the base year for economic calculations, with 2019 selected as the new benchmark due to its relative economic stability. He noted the inclusion of previously under-represented sectors such as digital services, the National Health Insurance Scheme, quarrying and other mining activities, alongside informal and hidden economic activities. He added that this broader scope offers a more comprehensive view of Nigeria’s economic landscape, recalibrating key metrics such as tax-to-GDP and debt-to-GDP ratios, while providing a clearer picture of per-capita income.
Similarly, the Head of Price Statistics at the NBS, Dr. Ayo Andrew Anthony under-scored the significance of CPI rebasing in accurately tracking inflation. With 2024 chosen as the updated base year, the new CPI framework incorporates economic shifts such as subsidy removals and changing consumption patterns. “The CPI is crucial for tracking inflation and ensuring that price references and weights are aligned with current realities. By updating the base year to 2024, we account for the economic shifts, including the removal of subsidies, ensuring inflation rates accurately reflect market conditions,” he remarked. Dr. Anthony also emphasized that the inclusion of new indices, such as education and transport price metrics, ensures that inflation rates reflect current realities, strengthening monetary and fiscal policies and price stability efforts.
