The National Bureau of Statistics (NBS) has said prostitution, drug peddling, and other illegal and hidden activities will be included in the calculation of the country's Gross Domestic Product (GDP).

NBS made this known during a sensitisation workshop on GDP and Consumer Price Index (CPI) Rebasing, which was organised in collaboration with the Nigerian Economic Summit Group (NESG) on Thursday, December 9, 2025.

The bureau also proposed 2019 as a new GDP base year and 2024 as the new base year for inflation computation.

The body explained that 2019 was proposed because economic activities were relatively stable during the year, unlike subsequent years disrupted by COVID-19 and the attendant policy shifts.

It added that the rebased GDP is designed to capture new segments such as the digital economy, pension fund administrator activities, the National Health Insurance Scheme (NHIS), and the Nigerian Social Insurance Trust Fund (NSITF).

The new segment will also include activities of modular refineries, domestic households as employers of labour and coverage of illegal and hidden activities.

Shedding light on the proposed inclusion of illegal and hidden activities in the classification, Dr Baba Madu, Head of National Accounts at NBS said the new categories will align with the national best practices.

“Illegal activities will be in line with the national best practices, that is System of National Accounts, SNA 2008.

“If you are into, for instance, drugs, there are some countries, it is this drug that is driving their economy. It is illegal here because there is no legal backing. Also prostitution, they also earn income. Some even live bigger than those in the formal sector. The SNA does not say no to these, it is we. But the challenge is the legal backing and how we get the data.

“And then, of course, the hidden economy. If I ask you, how much you earn in a month, you will lower your income. Or if somebody is selling provisions in a store, and before you know it he started selling Indian hemp. Those are the things we are seeing. There are challenges all over the world. But the beauty is that they are less than 3.0 to 3.5% of the GDP,” he said.

NBS states the importance of rebasing

The Statistician-General, Prince Adeyemi Adeniran, who highlighted the importance of GDP and CPI rebasing, said the move would help to capture new industries and changes in consumption patterns.

“The rebasing is a vital exercise that ensures our economic indicators are current and accurate reflections of the economic realities on the ground. As economies evolve, new industries emerge, and consumption patterns shift, it becomes imperative to update our statistical measures to capture these changes.

"Rebasing our GDP and CPI allows us to align with these transformations, providing a more precise and relevant picture of Nigeria’s economic landscape. This process is foundational to informed policymaking, strategic planning, and effective governance; hence, it is one exercise that NBS is conducting with significant importance and professionalism," Adeniran said.

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For his part, the Chief Executive Officer of NESG, Dr Tayo Aduloju, posited in his welcome address that “Accurate data enhances credibility. Our debt-to-GDP ratio, a critical indicator of fiscal health, dropped from 19% to 11% after the 2014 rebasing.

“This improved Nigeria’s creditworthiness, making us a more attractive destination for foreign direct investment. Investors are drawn to transparency and growth potential, and rebasing sends a clear message: we understand our economy, and we are open for business.

“Second, rebasing sharpens policymaking. It provides a detailed map of our economic terrain, enabling governments to identify high-growth sectors for scaling and low-growth sectors that require targeted interventions to drive impactful and balanced development. For example, after Ghana’s 2010 rebasing—which resulted in a 60% GDP increase—its policymakers could better plan for infrastructure and social investments, fueling sustained growth.”