NBS to include illegal activities in GDP calculation in Nigeria

How Should Illegal Activities Impact GDP Calculations?

The National Bureau of Statistics (NBS) in Nigeria has announced plans to incorporate illegal and hidden economic activities, such as prost!tution and drug peddling, into the country’s Gross Domestic Product (GDP) calculations.

Moses Waniko, a senior official at NBS, stated that this initiative aims to provide a more comprehensive representation of Nigeria’s economy by accounting for all income-generating activities, regardless of their legal status.

He noted that individuals involved in these sectors often earn substantial incomes, which subsequently impact the formal economy.

The NBS last revised Nigeria’s GDP in 2010. The upcoming recalculation will use 2019 as the base year and will also consider new sectors, including the digital economy, health and social insurance, pensions, modular refineries, mining, and households employing labor.

Waniko expressed optimism that this comprehensive approach would reveal a larger economy than currently estimated.

This move aligns with international practices, as several countries have integrated illegal economic activities into their GDP measurements to capture the full scope of their economies.

By adopting this methodology, Nigeria seeks to enhance the accuracy of its economic data, which is crucial for effective policy formulation and implementation.