GDP RE-BASING
The re-basing of Nigeria’s Gross Domestic Product (GDP) is not really appreciated by Nigerians, as they do not see the immediate effect of a bigger GDP. Nigerians believe that with more than a hundred million citizens living in gruesome poverty, re-basing the GDP does nothing to help the hungry.
But in reality, the re-basing of GDP was an economic leap for the Nigeria. According to a Price water Cooper (PwC) publication, GDP is “an internationally recognised measure of economy size and strength”.
For years, Nigeria thought the size and strength of its economy was in the range of N42.4 trillion ($269.5b) while it was actually in the range of N80.2 trillion ($509.9b). That’s like a lion thinking and telling the world that it’s a cat.
It is important to have up-to-date information on the size and capacity of a nation’s economy. These are the factors that influence foreign investors, and give direction in planning and making robust investment decisions.
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Rebasing of the economy re-emphasized Nigeria’s place as the economic giant of Africa. Jonathan would be remembered as the president who “made” Nigeria the biggest economy in Africa – a factor that favoured Akinwunmi Adesina’s emergence as the eight president of African Development Bank (AfDB). Jonathan’s administration told Nigeria: You are not a cat; you are an economic lion.
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