Atedo Peterside, the founder of Stanbic IBTC Bank Plc, has advised the National Bureau of Statistics (NBS) to prioritize building trust and credibility as it embarks on the process of rebasing Nigeria’s Gross Domestic Product (GDP).
He made this known while speaking on Politics Today on Channels Television on Sunday.
Speaking on the importance of accuracy in economic data, Peterside noted that while GDP rebasing is a standard practice in most economies, its effectiveness depends on the credibility of the agency handling the process.
He highlighted the concerns surrounding the recent adjustments in the computation of Nigeria’s unemployment rate, which raised skepticism among analysts and the general public.
“The rebasing happens once in a while in most economies. Part of the problem we have here is that there is a trust deficit. The Nigerian Bureau of Statistics said they changed how they compute unemployment, and all of a sudden, we realized that we are almost attaining full employment in Nigeria. Sometimes, it’s garbage in, garbage out,” Peterside stated.
Calls for Transparency and Credibility
Peterside, who was a member of the Economic Management Team during the administration of former President Goodluck Jonathan when Nigeria’s GDP was last rebased, recalled that the process then was met with trust due to the established credibility of the NBS leadership at the time.
“While I sympathize that there is a need to rebase. I was on the Economic Management Team of Jonathan when the GDP was rebased. But, there was credibility then. The head of the NBS had already established credibility. There was no trust deficit. People could at least listen.
“Initially, there was the shock that people felt when they heard that the inflation they thought was above 30 per cent, suddenly you say it’s 24% because you have recomputed or decided to reconfigure how you go about it. I will just appeal to them to focus on building that credibility. It was there before. There was a time when whatever NBS said, Nigerians believe. And they should be careful that they don’t lose that,” he noted.
He emphasized the importance of maintaining public confidence in economic data, warning that inconsistencies in reporting inflation and other economic indicators could further erode trust.
Exchange Rate Stability as a Key Economic Indicator
Peterside also touched on Nigeria’s exchange rate stability, highlighting the relative calm in the foreign exchange market. According to him, maintaining a stable exchange rate is a positive step towards economic recovery and should be leveraged to address inflation and interest rates over time.
“Take the exchange rate. Whether we like it or not, the exchange rate has stabilized around N1,500 to a dollar. That’s a victory because it has brought some stability; people are not frightened or rushing for dollars as if they will disappear tomorrow,” he explained.
He further stressed that a stable exchange rate helps to manage inflation expectations, which in turn allows for a gradual reduction in interest rates.