Nigeria’s Gross Domestic Product rebasing in 2025 is expected to bolster investor confidence and enhance the country’s economic outlook, according to experts at the Lagos Chamber of Commerce and Industry (LCCI) 2025 Economic Review and Outlook Conference held in Lagos.
The rebasing, announced by the National Bureau of Statistics (NBS), will use 2019 as the new base year instead of 2010, aligning the country’s economic indicators with current realities.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele emphasized the significant benefits of the rebasing, including improved investor perception, adjustments to the tax-to-GDP ratio, and a more accurate measurement of per capita income.
“Rebasing the economy signals to investors that Nigeria is serious about reforms and provides a clearer picture of the country’s economic trajectory,” Oyedele said.
He highlighted the Consumer Price Index (CPI) rebasing as another critical component, which would offer a more precise understanding of inflation and its drivers.
Addressing fiscal reforms, Oyedele disclosed ongoing efforts to streamline budget processing, medium-term expenditure frameworks, and fiscal strategy papers.
He expressed optimism that tax reform bills currently under stakeholder review would be enacted by the first quarter of 2025, creating a more favorable environment for businesses and small enterprises.
“These reforms will reduce costs, simplify tax processes, and ensure small businesses thrive without excessive burdens,” Oyedele stated.
He also reiterated President Bola Tinubu’s commitment to stabilizing the foreign exchange rate and reducing inflation, which he said were critical to sustainable economic growth.
Meanwhile, President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye, highlighted the severe challenges faced by the manufacturing sector in 2024, citing high inflation, elevated interest rates, and the depreciating value of the Naira.
Represented by MAN’s Head of Corporate Communications, Dr. Segun Alabi, Meshioye noted that these factors, coupled with increased electricity tariffs, constrained the sector’s contributions to GDP.
Meshioye urged the government to address these macroeconomic challenges and accelerate reforms to enhance productivity and drive national development.
“The resilience of our business community is commendable, but we must harness our collective strength to tackle these obstacles and foster economic growth,” he said.
Experts at the conference agreed that the ongoing economic reforms, including tax policy adjustments and the stabilization of critical macroeconomic indicators, would shape the future of the manufacturing sector and the broader economy.
“I am optimistic about 2025 and the prospects it holds for businesses, families, and individuals,” Oyedele said, expressing confidence in the Federal Government’s strategies to foster sustainable growth and attract foreign investments.
