Expert’s faults NBS plan to include illegal activities in GDP rebasing

Experts have described as morally and logically flawed, the National Bureau of Statistics (NBS) plan to include proceeds from illegal activities such as prostitution and drug trafficking as part of legitimate economic calculations.

Legal expert Barrister Yetunde Adebayo condemned the proposal, stating that Recognizing illegal activities in GDP calculations is not only unethical but sets a dangerous precedent. It could inadvertently legitimize criminal enterprises, complicating law enforcement efforts and undermining societal values.”

Economist Dr. Abdul Ahmed highlighted another pressing issue: “If we include proceeds from prostitution or drug trafficking, what stops us from recognizing armed robbery or human trafficking? Where do we draw the line? The focus should be on strengthening our formal economy, not glorifying illicit activities.”

Unlike countries such as Denmark, where sophisticated systems allow for the tracking and measurement of these activities, Nigeria’s institutional challenges make such a proposal unrealistic. Many sex workers operate discreetly, blurring the lines between informal and illegal economies.

Some analysts attribute this move to what they describe as “lazy intellectualism.” Instead of developing frameworks tailored to Nigeria’s unique socio-economic context, the NBS appears to have adopted a blanket approach based on practices in developed nations with vastly different realities.

Professor Olufemi Adebanjo, a leading scholar in development economics, criticized the bureau: “The NBS should lead with innovation and contextual analysis, not copy-paste methodologies from Europe. Nigeria’s economy, governance, and social fabric differ vastly from those of Western countries. What works there might not only fail here but cause irreparable damage.”