The Kwara State Bureau of Statistics (KWABS) on Tuesday revealed that the state's Gross Domestic Product (GDP) is estimated at N8.3 trillion at current market prices.

The new figure came up following the compilation and computation of the state GDP for the first time since 1967.

The report suggests that Kwara ranks behind only Lagos, Rivers, Delta, and Akwa Ibom in national standing based on 2022 National Bureau of Statistics data.

In 2024, the Kwara State Government announced it was going to compile its own GDP data in collaboration with the National Bureau of Statistics (NBS). Before that, the state had been using the United Nations estimates from a 2007 United Nations Development Programme (UNDP) report. Not only was that template considered to have been outdated, many economists and development enthusiasts also believed that it may not entirely reflect the peculiarities of the local economy, which had become nuanced, diverse, multifaceted, and expanding.

The state also said the last NBS report that put its GDP at N3.2 trillion, which ranked 19th nationally, did not reflect its economic realities. This informed its decision to join the league of "structured states" with up-to-date GDP compilation covering 2013-2022.

According to the KWABS report, Kwara's new population is projected at over 4.2 million.

The increasing population propels its economic strength through agriculture, trade, and services.

Trading, services, and the state's fertile agricultural base remain key drivers, with major crops including maize, cassava, rice, sorghum, cocoa, palm oil, and groundnuts.

KWABS explained that the 2023 GDP exercise followed internationally recognised standards, including the System of National Accounts (SNA 2008), Central Product Classification (CPC Version 2), and International Standard Industrial Classification (ISIC Rev. 4.0).

It also revealed that two major estimation methods were adopted: Direct (Bottom-Up) Approach and Indirect (Top-Down) Approach. The former entails the collection of primary data from businesses across the state, while the latter involves the use of national data to estimate Kwara's economic share.

The GDP rebasing exercise shows that Kwara alone accounted for about 4.1% of Nigeria's economy within that same period under review. The economy was always bigger than it was made to be.

With the new correction, Kwara's economic outlook would be more factual, realistic, and positively judged. The state can now plan and attract investment using real data instead of 16-year-old estimates.

Many economists believe that the tax base matches the actual economic size.

This could not be more captured by the 36% IGR growth recorded between 2023 and 2024. There are also other economic signals looking positive. Kwara was ranked 3rd in subnational fiscal performance for 2024 by BudgIT. It is also currently projected as the 5th least dependent state on federal revenue in Nigeria.

This turnaround is historic. While it may not be said to be all about new growth in the last seven years, it is apt to also argue that we may never get here without the visionary leadership of Governor AbdulRahman AbdulRazaq, who not only sanctioned the GDP exercise, but followed through with visible reforms and actions to transform the Kwara economy. It could not be more puzzling how successive administrations chose to kick the can down the road.

As it had so far done in education and health, Kwara has reasserted its place as a major economic hub in Nigeria and things can only get better from here.