Nigeria Now 26th Largest Economy Globally With US$453bn GDP Nigeria has moved up 11 steps to number 26th largest economy globally ahead of South Africa, following the outcome of the reclassification of the based year of the Gross Domestic Product (GDP) from 1990 to 2010. The country’s GDP increased by 75.58 per cent from $258.55 billion before the rebasing to $453.96 billion. The new GDP places Nigeria ahead of countries like Austria with $394.7 billion; Venezuela with $381.26 billion as well as Columbia, Thailand, Denmark, Malaysia and Singapore among others which has $369.6 billion, $$365.96 billion, $$314.88 billion, $274.7 billion and $269.86 billion respectively. On the continent, Nigeria now ranks number one ahead of South Africa which currently has a GDP of $384.3 billion. The result of the rebasing of Nigeria’s GDP, the first in almost 25 five years, confirm that the country’s economy has grown in total value and undergone significant changes, including substantial diversification in May sectors especially in the last 10 years. Statistician General of the Federation Dr Yemi Kale who announced the new GDP figures yesterday in Abuja, noted that the results reveal better diversification of the Nigerian economy than earlier reported. One of the major changes identified is the noticeable shift in the share of key sectors to the country’s overall GDP. An example is the decline in the share of agriculture sector which dropped to 24 per cent while the share of the Services sector rose to 50.2 per cent. In the 1990 nominal series, agriculture contributed 30 per cent to the GDP while the industry contributed 46.1 per cent and services sector contributed 23.6 per cent. According to Kale, even though agriculture is growing in terms of total value and jobs created, the rise in the contribution of services sector such as the telecommunications has led to the reduction of its contribution as a proportion of total GDP. The implication of this, he said, is that Nigeria is moving towards a more service-oriented economy. Under the new service industry structure, information and communication rank high, next to wholesale and retail trade. NBS said it carried out the exercise with assistance from respected Nigerian economists including Professor Olu Ajakaiye, President of the Nigerian Economic Society, Professor Akpan Ekpo, Dr Ayo Teriba and others; the International Monetary Fund, the World Bank, the African Development Bank and other partners, the rebased estimates indicate the forecast for the nominal GDP for Nigeria in 2013 is N80,222,128.32 ($509.9 billion) Comparatively, nominal GDP for the previous three years were: 2010: N54,204, 795.12m ($360.6 billion), 2011: N63,258,579.01m ($408.8 billion) and 2012: N71,186,534.89m ($449.9 billion) The changes between the old and new rates represent growth of 59.5% in 2010, 69.13% in 2011, 75.58% in 2012 and 89.22% in 2013 (forecast). The rebased GDP numbers imply that the level of economic activity is much higher than previously reported. It indicates a clearer picture of Nigeria’s economic landscape, and the significant opportunity for growth and wealth creation in the Nigerian economy. Speaking on the development, Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala said: “We did not set out to become the biggest economy in Africa. We set out to measure how much the economy has changed. And that is the outcome. Becoming the largest economy on the continent is a positive development, but it is not destination. The knowledge derived will help us make better policies to grow the economy and create jobs for young Nigerians.” She stated that “Nigerians have worked hard to make our economy the largest in Africa and they should be proud of the feat. But it is also a challenge and an opportunity. The results of the rebasing exercise will not make the challenges of poverty and unemployment disappear overnight but the better understanding of the structure and changes of the economy will give us better tools to grow the economy and tackle poverty and unemployment.” Ambassador Bashir Yuguda, Supervising Minister of the Ministry of National Planning underscored the credibility of the rebasing exercise which he stressed was rigorously and professionally executed by a team of local and international experts. “It is a thorough job and we are pleased with the results. The results will empower government to do more for the Nigerian people.” Okonjo-Iweala while highlighting the benefits of the exercise said the GDP rebasing will give government tools to better tackle the challenges of growing the economy and fighting poverty. It is only when we are able to collate, understand and interpret data correctly as well as identify key areas in our economy that require change that our policy prescriptions and direction are more likely to respond to the real needs of the Nigerian economy. “Rebasing the GDP provides more accurate data on the economy to enable policy makers make informed decisions and policy choices to tackle social problems like poverty and unemployment.” “Nigeria’s rebased GDP is expected to be a more accurate reflection of the structure and size of current economic activities in the country, presenting a clearer sectoral distribution and performance. As a result better investment choices are expected to be made resulting in higher profitability and even higher investments. This will help create jobs and also reduce poverty in Nigeria in the medium to long term.” “The exercise will provide significant support for the growing pool of investors; The rebasing of GDP is expected to boost Nigeria’s financial market ratings as investors show greater interest in the economy; The rebased series provide broader classifications of economic activities, revealing opportunities for expanding the revenue tax base; The rebased estimates also allow for better computation of state debt sustainability analysis. With the rebased estimates providing more accurate economic statistics, economic planners are better able to formulate appropriate economic policies and sector strategies to achieve desired development objectives,” she said.
Posted on: Sun, 06 Apr 2014 16:32:18 +0000
Trending Topics
Recently Viewed Topics
© 2015