Rebased GDP reinforces realisation of Vision 2020 target – Agbaje
by HOPE MOSES-ASHIKE
May 2, 2014 | 10:11 am| | | Start Conversation
Opeyemi Agbaje says the country is on its way to achieving the Vision 2020 target
The Gross Domestic Product (GDP) rebasing exercise suggests that by mere statistical adjustments and better measurement of Nigeria’s economic activity, the country is on its way to achieving the Vision 2020 target, Opeyemi Agbaje, CEO, RTC Advisory Services Limited, has said.
The vision is to place Nigeria among the best 20 economies in the world by year 2020.
Agbaje, who spoke at the Finance Correspondents Association of Nigeria’s (FICAN) bi-monthly discourse held on Wednesday in Lagos, said rebasing makes Nigeria the 26th largest economy in the world and biggest African economy by 2013.
He said the feat also enhances the country’s Vision 2020 target considering its GDP growth rate post-rebasing averaging 6.4 percent.
Speaking on the theme, ‘Nigeria’s Economy in First Quarter 2014: Issues and Outlook’, he said GDP rebasing does not imply an increase in national income and productivity. He also said GDP is not a measurement of income, but of economic output and production within an economy.
“GDP rebasing doesn’t alter our poor performance in terms of poverty, unemployment and inequality-GDP rebasing doesn’t change the material conditions of individuals, homes and firms within the economy,” he said.
Agbaje said the exercise gives Nigeria a more accurate picture of the current state of its economy and presents a more credible and contemporary report of the state of sectors and overall activity within the economy.
Continuing, he said: “Nigeria’s GDP rebasing clarifies some previously unresolved incongruities in our economy, like why the large global telecommunications companies and sector analysts under-estimated the potential depth and size of the sector pre-digital mobile licence auction in 2001”.
The exercise, he said, also clarifies issues relating to why per capita GDP appeared somewhat larger than previously thought. He added that it is a commonsense measure consistent with global best practice that simply updates a country’s assumptions and templates for measuring its level of economic output.
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