Prostitution, illegal activities now part of GDP – NBS

VANGUARD

The National Bureau of Statistics, NBS, yesterday said that illegal and hidden activities like prostitution and drugs peddling will now be included in the calculation of the country’s Gross Domestic Product, GDP.

Elaborating on the inclusion of illegal and hidden activities in the classification of economic activities for computation of the GDP, Head of National Accounts, NBS, Dr. Baba Madu, said: “Illegal activities will be in line with the national best practices, that is System of National Accounts, SNA 2008.

“If you are into, for instance, drugs, there are some countries, it is this drug that is driving their economy. It is illegal here because there is no legal backing. Also prostitution, they also earn income. Some even live bigger than those in the formal sector. The SNA does not say no to these, it is we. But the challenge is the legal backing and how do we get the data.  

“And then, of course, the hidden economy. If I ask you, how much do you earn in a month, you will lower your income. Or if somebody is selling provision in a store, and before you know it he started selling India hemp. Those are the things we are seeing. There are challenges all over the world. But the beauty is that they are less than 3.0 to 3.5% of the GDP.”