NBS to Include Prostitution, Drug Peddling, Other Illegal Activities in GDP Calculation

The National Bureau of Statistics (NBS) has announced plans to include illegal and hidden activities, such as prostitution and drug peddling, in the calculation of Nigeria’s Gross Domestic Product (GDP).

This decision was disclosed during a sensitization workshop on GDP and Consumer Price Index (CPI) rebasing, organized in collaboration with the Nigerian Economic Summit Group (NESG).

Dr. Baba Madu, Head of National Accounts at NBS, explained that the inclusion aligns with international best practices under the 2008 System of National Accounts (SNA). He highlighted that while activities like drug peddling and prostitution are illegal in Nigeria due to the absence of legal backing, they still contribute to economic activity.

Dr. Madu pointed out that individuals involved in these sectors often generate substantial income, sometimes exceeding that of formal sector workers. Additionally, he addressed the hidden economy, which includes unreported earnings and unregistered trade, as a factor influencing GDP calculations.

Despite challenges in obtaining accurate data, he emphasized that these activities generally account for less than 3.0% to 3.5% of the GDP, making their inclusion a valuable step toward more comprehensive economic assessments.