The Centre for the Promotion of Private Enterprise (CPPE) has expressed its support for Nigeria’s recently re-based Gross Domestic Product (GDP) figures released by the National Bureau of Statistics (NBS).
The re-basing, which now anchors the country’s GDP to a new base year of 2019, represents a key milestone in Nigeria’s economic management and statistical transparency according to Dr Muda Yusuf, Director/ CEO of the Center.
The Yusuf lauded the exercise, saying it aligns Nigeria’s national economic reporting with global standards and provides a more accurate and comprehensive picture of the country’s economy.
This, according to the CPPE, will facilitate more effective decision-making across both public and private sectors.
Understanding the Significance of GDP Re-basing
GDP re-basing is an important statistical process that updates the reference year for calculating national economic output. By shifting the base year to 2019, Nigeria’s GDP now better reflects changes in consumption patterns, production technologies, and sectoral shifts. This re-basing is essential for ensuring that national economic data remains current and relevant, especially in today’s fast-evolving global economy.
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The CPPE emphasized that more accurate data will provide valuable insights for policymakers, investors, and development partners. It will enable more informed decisions, enhance macroeconomic analysis, and allow for clearer comparisons with international economies.
The Re-based GDP: Positive Growth Amid Sectoral Challenges
According to the new data, Nigeria’s nominal GDP reached ₦372.82 trillion in 2024, a 41% increase over the 2019 figures. The Nigerian economy also recorded a 3.38% growth in 2024. However, in the first quarter of 2025, GDP growth moderated slightly to 3.13%, with total output for the quarter at ₦94 trillion. Despite the slowdown in Q1 2025, the CPPE projects that Nigeria’s GDP could reach $450 billion by the end of the year, assuming no major disruptions in the economy.
Sectoral Performance: The Good and the Bad
While Nigeria’s overall economy has shown growth, performance across sectors has been mixed. High-performing sectors such as financial services, oil refining, transportation, and ICT have all seen positive growth, with financial services expanding by 15.3% and oil refining by 11.51%.
However, some critical sectors have struggled, particularly agriculture, which grew by just 0.7%, and manufacturing, which expanded by only 1.7% in the first quarter of 2025. The CPPE has called for focused interventions to address these underperforming sectors, highlighting the need for investment in agriculture and manufacturing to boost productivity and job creation.
Concerning Trends: Sectors in Recession
Several sectors continue to experience significant challenges. The livestock industry, for example, contracted by 16.7%, while fishing, textiles, and coal mining also recorded negative growth. Air transport, one of the worst-hit sectors, shrank by 0.81%, reflecting ongoing struggles within the industry.
The CPPE noted that while the non-oil sector continues to dominate, contributing over 96% of GDP, the performance gap between GDP contribution and government revenue generation remains a persistent issue. Despite agriculture’s contribution to GDP increasing to 25.8%, the sector still faces significant hurdles in contributing effectively to government revenue.
Policy Recommendations for Boosting Growth
To address these challenges, the CPPE has put forward several key policy recommendations:
- Support for Underperforming Sectors
The CPPE urges the government to prioritize support for struggling sectors, particularly those in recession. Interventions such as improving access to finance, tackling insecurity, and encouraging innovation are crucial for stimulating growth. - Sustaining High-performing Sectors
High-performing sectors like ICT and financial services should receive continued support to sustain their growth and expand their potential as engines of job creation and revenue generation. - Bridging the Revenue Gap
The CPPE emphasized the need to strengthen Nigeria’s tax administration systems, broaden the tax base, and optimize non-tax revenues. These measures are essential to bridge the gap between the non-oil sector’s GDP contribution and its share of government revenue. - Frequent Data Updates
The CPPE advocates for more frequent GDP re-basing exercises to ensure that Nigeria’s economic data remains relevant and useful for investment and policy decisions.
Conclusion: A Roadmap for Sustainable Growth
In conclusion, the CPPE commended the NBS for the successful re-basing of Nigeria’s GDP, despite challenges in resource allocation. The CPPE believes that by leveraging improved data and focusing on key policy interventions, Nigeria can address its economic challenges and unlock sustainable growth.
With the continued engagement of all stakeholders, including government agencies, the private sector, and development partners, Nigeria’s economy can progress towards greater diversification, inclusion, and long-term prosperity
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
