GDP Rebasing to Boost Services Sector with Largest Gain

The rebasing of Nigeria’s Gross Domestic Product (GDP) is expected to benefit the services sector the most, according to analysts, who predict substantial growth in this area as a result of the updated economic calculations. The rebased GDP, which now includes a broader range of economic activities, shows the increasing importance of services, including telecommunications, financial services, and information technology, in driving the national economy.

The National Bureau of Statistics (NBS) recently completed the rebasing process, adjusting the GDP calculation to reflect changes in the structure of the economy. The new methodology has revealed that the services sector’s contribution to the economy is even more significant than previously estimated, surpassing other sectors such as agriculture and manufacturing.

Economic analysts have pointed out that the rise in the services sector’s GDP share is driven by the rapid expansion of digital services, e-commerce, and the growing role of fintech, which have been central to Nigeria’s economic transformation in recent years. The telecommunications sector, in particular, has played a key role, as mobile internet access and digital solutions continue to proliferate across the country.

Dr. Adebayo Adeyemi, an economic analyst, explained that the growth of services reflects global trends, where economies are increasingly shifting toward service-based industries. “Nigeria’s economy is diversifying, and the services sector is capitalizing on technological advancements and the growing demand for digital services,” he said.

While the rebasing highlights the success of the services sector, it also brings attention to the need for greater investment in infrastructure, skills development, and regulatory frameworks to sustain this growth. Industry experts have called for enhanced policies to support innovation in the services sector, particularly in areas like cybersecurity, data protection, and online financial services.

Despite the services sector’s impressive growth, some challenges remain, including access to affordable broadband and the need for inclusive growth that benefits all segments of the population. However, the rebased GDP figures underscore the sector’s potential as a key driver of future economic development.

As Nigeria continues to focus on diversifying its economy, the services sector is poised to play an even more prominent role in shaping the country’s economic future. With the right policies and investments, it could become a cornerstone for sustainable growth and development.