It is importance to have uptodate data so the rebasing. Nigerias economy largest in africa as rebasing boosts gdp. Gross domestic product gdp is an internationally recognised measure of economy size and strength. What nigerias gdp rebasing means to entrepreneurs encomium. Nigerian economy overtakes south africas on rebased gdp. Nigerias rebased economy and its role in regional and. The rebasing of the gdp is expected to boost nigerias financial market ratings as investors will now show greater interest in the economy. With the latest rebasing, nigerias gdp has increased to 89. Nigeria overtook south africa on sunday to become africas largest economy and 26th largest in the world after the government released updated figures that nearly doubled estimates for gross domestic product. But nigerias gdp figures will not on their own produce dramatic changes in living conditions. Apr 07, 2014 campbell delves deeper into the economic problems facing individual nigeriansissues that no amount of rebasing can solve. The rebasing of its gross domestic product gdp figure has catapulted the emerging giant to the top of the subsaharan african gdp pile, with its counterpart south africa the entrenched number one for many decades moving to second place.
On the positive side, the rebasing will help nigeria narrow the budget deficit and public debt ratios as a share of gdp. How nigeria became africas largest economy overnight. Nigeria s gdp increase far exceeded the expectations of analysts who had forecast an increase of between 40 and 60 per cent following the rebasing exercise. Nigeria to delay rebasing of gdp until next year the rebasing of nigerias gross domesticproduct gdp, which is expected to increase the estimated size of africas secondlargest economy by about 40 percent, was likely to be delayed until next year, the head of. But nigeria s gdp figures will not on their own produce dramatic changes in living conditions. South africas gdp numbers are three times larger than nigerias on. Some analysts expect the revision of gdp data to make it africas. Robertsons research also acknowledged that another impact of a higher gdp figure is that nigerias debt ratio will improve. Economic and fiscal implications of nigerias rebased gdp pwc. Apr 10, 2014 the nigerian national bureau of statistics completed its gdprebasing exercise last weekend, the result of which shows that nigerias 20 gdp is 89% higher than was previously calculated, and nigeria has overtaken south africa as the largest economy on the continent. Rebasing will boost nigerias gdp by 40 percent reuters. As a result of the size change, the stock market capitalization to gdp ratio estimate reduced from 33 % to 18 % for comparison. During this exercise gdp data was revised for 20102014. Lagos states economy will be equivalent to ghanas, post the rebasing of nigerias gdp.
Pdf the new rebasing of nigerian gross domestic product gdp by the national bureau of statistics nbs in april 2014 positioned the nigerian economy. The rebasing excercise has almost doubled gdp per capita, placing it. The rebasing excercise has almost doubled gdp per capita, placing it among middleincome countries. Rebasing nigerias tax system to save economybusiness.
For the new base year of 2010, the assessed value of gdp increased by 60. The nigerian national bureau of statistics completed its gdprebasing exercise last weekend, the result of which shows that nigerias 20 gdp is 89% higher than was previously calculated, and nigeria has overtaken south africa as the largest economy on the continent. It is currently the 25 th largest economy in the world. Nigeria to delay rebasing of gdp until next year the rebasing of nigerias gross domesticproduct gdp, which is expected to increase the estimated size of africas secondlargest economy by about 40 percent, was likely to be delayed until next year, the head of the statistics bureau said yesterday.
Faq on rebasing final national bureau of statistics, nigeria. It is importance to have uptodate data so the rebasing is a step in the right direction. Are african countries rebasing gdp in 2014 finding evidence. Meanwhile, the economy still faces serious structural and performance issues. Rebasing is a good move and major development for nigeria.
Pdf analysis of the impact of inflation reduction on. The public debt ratio could fall from 18% of gdp in 2012 to % of gdp in 2014, and gross external public debt using the dollar figure reported by the central bank of nigeria 2012 annual report could drop. Okonjoiweala gives reason for gdp rebasing vanguard news. Economic and fiscal implications of nigerias rebased gdp. Rebasing of gross domestic product gdp is there a need.
We expect that the rebasing exercise will see gdp figures being revised upwards. The rebasing rebenchmarking of nigerias economy is. Nigeria to delay gdp rebasing till next year politics. This report contains the back revisions of historical gdp 19812010 using the revised base. Rebased gdp, economic growth, unemployment, poverty. Apr 06, 2014 while the revised economic data saw nigerias 2012 debttogdp ratio decline to 11 percent from the 19 percent projected with the old figures, the country wont change its debt policy and. It is currently the 25th largest economy in the world. It is expected that by 2016, the gdp will be rebased again using 2015 as base year. As a result of the rebasing, nigeria is now the largest country in africa and 26 largest in the world. While much has been written in recent years about nigerias rising economic significance, little is known about its 36 states, which we explore here. Rebasing rebenchmarking of gdp country old base year new base year number of years between base years % difference in gdp after rebasing argentina 1986 1993 7 8. Harnessing the benefits of nigerias gdp rebasing nigerian. Governor babatunde fashola nigerias wealthiest reside in abuja, lagos obinna chima the planned rebasing of nigerias gross domestic product gdp is expected to raise lagos state to africas th biggest economy by 2014, a report assessing the respective economies of the 36 states of the federation has shown.
Dec 20, 20 robertsons research also acknowledged that another impact of a higher gdp figure is that nigerias debt ratio will improve. However, nigeria needs more than gdp rebasing to stimulate the economy. Apr, 2014 the decision by the national bureau of statistics nbs early this week to rebase nigerias gdp to better reflect the countrys changing economic configuration over the years, has ultimately. Rebasing rebenchmarking of the national account series gdp is the process of replacing an old base yearused to compile volume measures of gdp with a new and more recent base year or price structure. Nigeria has maintained its impressive growth over the past. However, the revision would reduce the relative size of nigerias current. The rebasing of its gross domestic product gdp figure has catapulted the emerging giant to the top of the subsaharan african gdp pile, with its counterpart. Rebased gdp, world bank and nigerias realities vanguard. Nigerias rebased economy and its role in regional and global.
The rebasing of the nigerian gdp in april 2014 was a departure from the 1990 base. Currently, nigerias base year is 1990, but a new base year of 2010 has been selected for the rebasing exercise. Nigerian authorities have moved back the date to announce revised gdp figures from the 10th of december, by at least 2 weeks. It is ranked as the 27thlargest economy in the world in terms of nominal gdp, and the 22ndlargest in terms of purchasing power parity.
Dr ngozi okonjoiweala, the minister of finance on friday said the essence of rebasing nigerias gross domestic product gdp was to. The rebasing of nigerias gdp the change of the base year from 1990 to 2010 and the increase in the number of industries measured for gdp calculation raises the size of the economy of africas most populous nation by 75%1. The rebasing of nigerias gdp from 1999 to 2010 resulted in a 89% increase in the estimated size of the economy. In 2014, nigerias gdp was rebased using 201o as the base year to replace 1990 previously used. The countrys economy has traditionally been dominated by oil and gas production about 3040% of prerebased gdp, but the rebasing revealed. Are african countries rebasing gdp in 2014 finding. The new rebasing of nigerian gross domestic product gdp by the national bureau of statistics nbs in april 2014 positioned the nigerian economy as the largest in africa and the 26 th in the world. Indications from revised calculations of the nations tax revenue to gross domestic product gdp after the rebasing of the economy last year by an independent source showed that it is far below. According to the united nations statistics division unsd, rebasing a countrys gdp is. The increase of about 90 % was attributed to new sectors of the economy such as telecommunications, movies, and retail which were previously not captured or underreported. Poverty levels in nigeria have not improved much over this period. The size and structure of the nigerian economy following the rebasing excercise. The rebased series provide broader classifications of economic activities, revealing opportunities for expanding the revenue tax base.
This is the first time nigerias gdp estimates will be rebased in almost a quarter. Economic assessment of nigerian states skyscrapercity. Analysis of the impact of inflation reduction on output and unemployment in nigeria. The nigerian services sector has shown impressive gains. The new rebasing of nigerian gross domestic product gdp by the national bureau of statistics nbs in april 2014 positioned the nigerian economy as the. May 02, 2014 dr ngozi okonjoiweala, the minister of finance on friday said the essence of rebasing nigerias gross domestic product gdp was to ascertain the actual size of its population. For one, the recent rebasing of its performance seemed to take other countries in the region by surprise.
The nigerian services sector has shown impressive gains amid. The economy of nigeria is a middleincome, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. Jun 07, 2014 outcome of nigerias gdp rebasing nigeria has witnessed robust economic growth averaging 67% in the last decade as a result of high global oil prices and the economic reforms that have been embarked upon by successive governments since the return to democratic rule in 1999. For 2011, 2012, and 20, the assessed increases in the level of nigerian gdp were 68. Nigeria almost doubles gdp in recalculation financial times. With the latest rebasing, nigeria is now worth n80. Rebased gdp, world bank and nigerias realities vanguard news. Nigeria gdp rebase on sunday likely to make it africas no.
Pdf analysis of the impact of inflation reduction on output. Product for nigeria 20,revised and final gdp rebasing. Nigeria poised to be africas largest economy after. Nigeria becomes africas largest economy get the data. Nigerias gdp figures will shoot up by around 40 percent in the second quarter this year, when africas secondbiggest economy changes the base year for. Economic and fiscal implications of nigerias rebased gdp gross domestic product gdp is an internationally recognised measure of economy size and strength. With rebasing, debt to gdp ratio has moved from 19 per cent to 11 per cent, while tax revenue to gdp ratio has dropped from 20 per cent to 12 per cent. Nigerias gdp rebasing makes the country the largest economy in africa. Nigeria has maintained its impressive growth over the past decade with an estimated 6. Nigerias statisticiangeneral would have none of that. Nigeria becomes africas largest economy news al jazeera. Introduction several key economic and financial institutions and leaders have commended nigerias rise to global economic power as a result of the rebasing of the. The nigerian financial system strategy, fss 2020, was developed in line with nigerias goal of becoming one of the top 20 economies in the world by 2020 with a gdp.
Nigerias gdp increase far exceeded the expectations of analysts who had forecast an increase of between 40 and 60 per cent following the rebasing exercise. The new statistics and figures make nigeria the worlds 26th largest economy okonjoiweala 2014. A number of us are wondering what this all means let us go through. Rebasing captured the structural changes in the economy especially in banking, telecom and entertainment sector where nigeria recorded dramatic growth in recent years. Apr 18, 2014 for one, the recent rebasing of its performance seemed to take other countries in the region by surprise. How nigeria became africas largest economy overnight the. While the outcomes of the rebasing exercise, especially the improvement in the gdp, are seen as a welcome development in. Highlights the concept of gdp rebasing and its key benefits.
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