20 facts on Nigeria’s GDP rebasing & FSS 2020

Minister of Finance, Ngozi Okonjo-Iweala

Gross Domestic Product, GDP, is the total market value of all final goods and services produced in a country in a given year.


Gross Domestic Product, GDP, is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment, government spending plans and the value of exports less the value of imports.

GDP includes all goods and services produced within the geographical boundaries of a nation, regardless of the producers’ nationality, while Gross National Product, GNP does not include goods and services produced by foreigners.

GNP uses the GDP plus income from external sources less income paid to foreign experts and entities.

GDP rebasing is the process of replacing old base year price structure in compiling volume measures of GDP with a new or more recent base year, usually at five years average interval.

The last time Nigeria undertook the rebasing of her economy was 24 years ago, with total nominal GDP ranging from 59.5 per cent.

With the latest rebasing, Nigeria’s GDP has increased to 89.22 per cent in 2014.

With the latest rebasing, Nigeria is now worth N80.2 trillion, or $509.9 billion, rising from its original figure of N42.4 trillion, or $269.5 billion.

With rebasing, Nigeria is now the 26th largest economy in the world, and the largest economy in Africa, ahead of South Africa.

With the latest rebasing, the service sector in Nigeria has covered better economic activities in wholesale and retail trade, including information and communication, real estate services, human health and social services, professional, scientific and technical services. With rebasing, Nigeria’s per capita income has risen from $1,555 to $2,688, ranked 121st in the world from 135th position.

With rebasing, Nigeria’s economy is now more diversified, with agriculture sector contribution declining from 33 per cent to 22 per cent, and services increasing from 26 per cent to 51 per cent; oil & gas 15.9 per cent, manufacturing 6.7 per cent, Telecoms 8.7 per cent, entertainment 1.2 per cent.

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.

The Nigerian Financial System Strategy, FSS 2020, was developed in line with Nigeria’s goal of becoming one of the top 20 economies in the world by 2020 with a GDP of $900 billion.

The FSS 2020 strategy has the vision to make Nigeria the safest and fastest-growing financial system amongst emerging economies.

The FSS 2020 objectives include to strengthen the Nigerian domestic financial markets; enhance their integration with external financial markets; and engineer Nigeria’s evolution into an international financial centre, IFC.

The FSS 2020 will integrate the informal financial sector into the formal financial sector and enhance integration with external financial markets.

The FSS 2020 will ensure the progressive unification of trade and commercial laws amongst the Economic Community of West African States, ECOWAS, and African Union, AU countries.

The FSS 2020 will create an environment that will attract global financial services firms and enables Nigerian financial institutions to export their products and services.

The FSS 2020 will foster a culture of securities innovation and development and encourage liquid and efficient secondary markets for trading in securities.
The FSS 2020 will promote a strong knowledge-based capital market and facilitate the development of a more robust, vibrant and deep money market.
Courtesy: CBN

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