February 24 2025
The National Bureau of Statistics, NBS have been urged to first build trust and credibility as it embark on the process of rebasing Nigeria’s Gross Domestic Product, GDP.
The founder of Stanbic IBTC Bank Plc, Atedo Peterside, gave the advise while speaking on a live Television progamme on Sunday.
Bearing his mind on the importance of accuracy in economic data, the astute banker, stated that while GDP rebasing is a standard practice in most economies, the credibility of the agency handling the process it, matters for it effectiveness.
Peterside, highlighted the concerns and skepticism that surrounded the recent adjustments in the computation of Nigeria’s unemployment rate.
“The rebasing happens once in a while in most economies. Part of the problem we have here is that there is a trust deficit. The Nigerian Bureau of Statistics said they changed how they compute unemployment, and all of a sudden, we realized that we are almost attaining full employment in Nigeria. Sometimes, it’s garbage in, garbage out.”
READ MORE; Rebase Is To Reflect The Evolving Structure Of The Country’s Economy – NBS
As a then member of the Economic Management Team in the administration of former President Goodluck Jonathan when Nigeria’s GDP was last rebased, Peterside, recalled that the process then was trusted due to the established credibility of the NBS leadership then.
“While I sympathize that there is a need to rebase. I was on the Economic Management Team of Jonathan when the GDP was rebased. But, there was credibility then. The head of the NBS had already established credibility. There was no trust deficit. People could at least listen.
“Initially, there was the shock that people felt when they heard that the inflation they thought was above 30 per cent, suddenly you say it’s 24% because you have recomputed or decided to reconfigure how you go about it. I will just appeal to them to focus on building that credibility. It was there before. There was a time when whatever NBS said, Nigerians believe. And they should be careful that they don’t lose that,” he stated.
While warning that inconsistencies in reporting inflation and other economic indicators could further erode trust, He emphasized that maintaining public confidence is key in economic data.
READ MORE; NBS Report Says Nigeria Spent N5.14tn On Mineral Fuels Import In Q3 of 2024
Speaking on Nigeria’s exchange rate stability, the IBTC founder, acknowledged the relative calm in the foreign exchange market, he explained that maintaining a stable exchange rate is a positive step towards economic recovery and should be leveraged to address inflation and interest rates.
“Take the exchange rate. Whether we like it or not, the exchange rate has stabilized around N1,500 to a dollar. That’s a victory because it has brought some stability; people are not frightened or rushing for dollars as if they will disappear tomorrow.”
Peter side, emphasized that a stable exchange rate helps to manage inflation expectations and gradual reduction in interest rates.
