GDP Rebasing: Nigeria’s Economy Shrinks by $266bn in 10 Years Amid Receding FDI

Nigeria's GDP has been rebased, revealing a significant shrinkage of $266 billion over the past 10 years, with receding foreign direct investment (FDI) playing a key role. The rebased GDP now stands at N372 trillion in 2024, equivalent to US $244 billion at the recent exchange rate.

This marks a decline from the $510 billion economy attained in 2014. The rebasing exercise incorporated new sectors like film, video, telecom, and information technology, leading to a more accurate representation of the Nigerian economy.

Despite this, FDI has plummeted to abysmally low levels, hindering economic growth and job creation. The decline in FDI is reflected in the latest Balance of Payments report, with FDI inflow decreasing by 19% to $250 million in Q1 2025 compared to the previous quarter.

This poses a challenge to Nigeria's economic reform efforts and investor confidence.