The National Bureau of Statistics (NBS) has announced that illegal and hidden economic activities, such as prostitution and drug peddling, will now be included in Nigeria’s Gross Domestic Product (GDP) calculations.
This move aligns with international statistical practices that aim to provide a more comprehensive picture of economic activity within a country, regardless of its legal status. By including these underground sectors, the NBS seeks to better reflect the full scope of Nigeria’s economy, including unreported and informal contributions.
According to the NBS, the inclusion of such activities is in line with recommendations by global institutions like the International Monetary Fund (IMF) and the United Nations, which advocate for capturing all economic activities that contribute to national output.
Critics have raised ethical concerns about the decision, arguing that it may inadvertently normalize or validate illegal activities. However, proponents of the approach emphasize that the inclusion is purely statistical and does not imply government endorsement of these activities.
The NBS clarified that the new methodology will be used to enhance accuracy and transparency in GDP reporting, ensuring that all forms of economic activity—legal or otherwise—are accounted for in policy planning and development strategies.
The updated GDP framework is expected to be implemented in upcoming economic reports, with the bureau promising further details on how these activities will be estimated and incorporated into official data.
This development marks a significant shift in Nigeria’s approach to economic measurement, as the government seeks to better understand the dynamics of the informal and underground economy.