Reassessing national economic output often involves working with incomplete or delayed data, which can lead to significant revisions — as recently seen in the United States. A similar recalibration occurred in Nigeria last month, when authorities revealed that the country’s gross domestic product had increased by more than 30% overnight.
Measuring economic activity in emerging or frontier markets presents unique difficulties, especially in nations where a large portion of work occurs in the informal sector, outside traditional employment frameworks. The updated figures for Nigeria are believed to reflect a more accurate representation of its true economic scale, incorporating previously underreported contributions from self-employment and small-scale enterprises.
Despite this upward revision, Nigeria remains the fourth-largest economy in Africa. It previously held the top position until two years ago, when President Bola Tinubu adopted a more transparent foreign exchange policy by allowing the naira greater flexibility in its valuation. This move contributed to a more realistic assessment of the country’s economic standing on the continent.
The revision underscores the importance of periodic updates to statistical methodologies, particularly in fast-evolving economies where informal activity plays a major role. While the headline GDP number has grown substantially, the structural challenges of job creation, infrastructure development, and inclusive growth remain.
— news from Bloomberg.com
— News Original —
How Nigeria’s Do-It-Yourself Economy Got a Lot Bigger
Assembling economic data is a continuous process, dependent on information that’s sometimes incomplete or late in arriving, which can lead to dramatic corrections as happened in the US a few weeks ago. Another such shift happened in Nigeria last month when it was announced that the nation’s gross domestic product was suddenly more than 30% bigger. n nGathering figures for an emerging or frontier market isn’t straightforward — particularly given how much activity occurs outside the formal part of the economy that features salaried workers. Arguably, the revised look at Nigeria offers a more accurate picture. It remains the fourth-largest economy on the African continent, having lost its status as No. 1 two years ago, when President Bola Tinubu endorsed a more realistic exchange rate by letting the naira float more freely.