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Chairman, House Committee on Aids, Loans and Management, Hon Adeyinka Ajayi yesterday contended that without accurate GDP figures, true economic size and performance cannot be measured and sound socio- economic policies cannot be proffered by government.
Speaking at a three -Day Retreat for House Committee members at MicCom Golf Hotels and Resort, Ada, Osun State, Ajayi remarked that there was need to ensure that the GDP was recalculated more frequently than once in the quarter of a century because there was no reasonable advantage in not knowing true state of the economic productivity.
According to him "it is only when the country is able to collate, understand and interpret data correctly as well as identify key areas of our economy that requires change that our policy prescriptions and direction are more likely to respond to the real needs of the Nigerian people".
Ajayi pointed out that the recalculation of the nation’s GDP has had profound effect on every aspect of our Nation’s economic outlook, adding that significant features of the rebased GDP shows that Nominal GDP for Nigeria was much larger than previously estimated.
The Member representing Boripe, Ifelodun and Odo-Otin Federal Constituency said in 2010 the rebased nominal GDP in Nigeria stood at N54,204,795.12m, N63, 258,579.01m in 2011, N71,186,534.89m in 2012 and forecast to be N80,222,128.32m in 2013.
His words, "the rebased GDP numbers imply that the level of economic activity is much higher than previously reported and It indicates a clearer picture of Nigeria’s economic landscape and the significant opportunity for growth and wealth creation in the Nigerian economy".
Hon Ajayi stressed that the sectoral look at the figures indicate that the structure of the Nigerian economy has changed significantly leading to a decline in the share of agricultural sector and a rise in the share of services sector in the nominal GDP indicating stronger diversification of the Nigerian economy than earlier reported.
The Chairman further noted that rebasing Nigeria’s GDP to reflect the current structure of the economy has lifted Nigeria to about the 30th largest economy in the world from its current 40th. while he observed that Ghana made a similar move to recalculate its GDP in November 2010, as estimated output shot up by 60%from $18 to $31 billion and catapulted it into the ranks of the middle income countries.
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