Tinubu Support Group Defends Inclusion Of Underground Economy In Nigeria’s GDP Rebasing

Abuja, Nigeria – The Tinubu Media Support Group (TMSG) has strongly defended the National Bureau of Statistics’ (NBS) decision to include figures from Nigeria’s informal economy in its ongoing GDP rebasing exercise.

In a statement issued today, the group dismissed public concerns as misinformation and petty politics.

TMSG Chairman Emeka Nwankpa and Secretary Dapo Okubanjo argued that the NBS’s actions comply with the internationally recognised United Nations System of National Accounts (SNA) 2008.

This framework, developed collaboratively by leading international organisations, seeks to provide a comprehensive picture of a country’s economy, including all economic activities that were previously unreported or hidden.

The statement acknowledged that the 2014 rebasing, which was based on 2010 data, excluded key sectors such as the digital economy, pension fund administration, and the National Health Insurance Scheme (NHIS).

The TMSG emphasised that including underground economic activities, even those considered illegal, is a common practice worldwide, citing examples from several EU countries and South Africa.

The group clarified that the goal is not to condone illegal activities such as drug trafficking or prostitution, but to collect accurate data to inform economic policymaking. They emphasised that these activities typically contribute a small percentage (3.0% to 3.5%) of a country’s GDP.

TMSG dismissed accusations that the government is promoting illegal activities through this initiative as deceptive.

The TMSG also argued that rebasing with 2019 as the base year would provide a far more accurate reflection of the Nigerian economy than the outdated 2010 baseline.

They emphasised the importance of conducting a national survey to identify key growth sectors and areas requiring government intervention.

They added that the rebasing will provide more accurate data on rapidly growing sectors such as the digital economy.

The group urged Nigerians to disregard attempts to discredit the process, describing the criticism as “uninformed rhetoric.”

They concluded that the advantages of a more accurate GDP calculation outweigh any perceived disadvantages.