The National Bureau of Statistics (NBS) announced on Monday that it will launch the Rebased Consumer Price Index (CPI) report at the end of January 2025, marking a significant step toward providing more accurate data for informed economic decision-making.
Ichedi Sunday Joel, the Director of Communication & Public Relations at NBS, explained that CPI is a critical macro-economic indicator that tracks the movement of aggregate prices within a country. He pointed out that the last CPI rebasing occurred in 2009, necessitating the current update to reflect changing consumption patterns and price volatility.
The CPI rebasing, according to Ichedi, has several benefits, including the creation of item weights that reflect the current consumption behavior of households and the development of an updated CPI basket that aligns with current market realities. This updated index will also serve as a key input into Nigeria’s fiscal and monetary policy formulation. Additionally, the new CPI will follow international standards, allowing for comparability with other countries.
“Since the last rebasing, the consumption pattern in Nigeria has changed significantly, with notable increases in household expenditures on telecommunication, as revealed by the recent Nigeria Living Standards Survey (NLSS) of 2023,” Ichedi noted. He added that the shift in consumption patterns had altered the basket of goods and services that the NBS uses to track prices, prompting the need for a revision.
A key reason for rebasing, according to Ichedi, is to bring the price reference period, or the base year, closer to the present time for a more accurate representation of price movements. For this rebasing, the Bureau has selected 2024 as the base year.
Prince Semiu Adeyemi Adeniran, the Statistician-General and CEO of NBS, assured Nigerians that the upcoming Rebased CPI Report will provide more in-depth insights into the economy and reflect the current economic structure. He emphasized the importance of rebasing both the CPI and GDP to incorporate new sectors and methodologies, thus ensuring that economic indicators accurately capture changes in consumption patterns and market dynamics.
“We expect the Rebased CPI Report to be exceptional, offering unparalleled insights into the Nigerian economy,” said Prince Semiu Adeyemi.
The full details of the Rebased CPI report will be made available to the public following its launch at the end of January 2025.
