By Atoyebi Nike
Nigeria’s economy expanded to a nominal Gross Domestic Product (GDP) of N372.8 trillion in 2024, propelled by the services, agriculture, and industry sectors, according to newly released rebased data from the National Bureau of Statistics (NBS). However, this economic leap has failed to ease the soaring cost of living, with headline and food inflation rising to 22.22% and 21.97% respectively as of June 2025.
The long-awaited GDP rebasing covering the years 2019 to 2024 marks the second such exercise since 2014, intended to better reflect structural changes and the growing contributions of underreported sectors like real estate, technology, and services.
Despite the nominal growth of 17.81% in 2024 and steady improvements since 2020 (excluding a dip in 2022), real-term growth stood at 3.04% in 2023 and 3.38% in 2024. The latest quarterly report shows Q1 2025 posting a 3.13% real growth rate, its slowest since the previous year.
Yet, Nigeria remains Africa’s fourth-largest economy, trailing South Africa, Egypt, and Algeria, with no shift in its continental standing according to IMF estimates.
“The good thing is that we now have a clearer picture of the economy,” said Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise. “Real estate has displaced crude oil as the third-largest contributor. Telecoms and services are growing faster than the real sector.”
Breakdowns of the rebased GDP reveal a structural shift:
Agriculture: from 22.12% to 26%
Industry: from 21.08% to 27.7%
Services: from 50.22% to 53.09%
Informal sector: up from 41% to 42.5%
Still, economists argue the expanded GDP offers little solace to citizens battling inflation, joblessness, and eroding incomes.
“This rebasing doesn’t automatically improve the standard of living,” warned Gbolade Idakolo, CEO of SD & D Capital Management. “It could trigger higher tax burdens while incomes remain stagnant.”
Similarly, Prof. Godwin Oyedokun of Lead City University stressed that while rebasing reflects economic growth on paper, it must be followed by inclusive policies:
“GDP rebasing is only meaningful if it drives real development, better fiscal planning, and inclusive growth. It must address structural constraints like unemployment, insecurity, and poor infrastructure.”
As Nigeria updates its economic measurements, experts urge the government to translate numbers into meaningful reforms, lest the GDP growth become another data point disconnected from daily realities.
