TRADE

Today Anambra is mostly a trading state. We don't know how much goods passes through Onitsha, Ogbunike, Obosi, Nkpor and Nnewi where the main markets are. But we can estimate. There are around 100,000 traders in these locations. Lets assume that the average trader sells around $ 30,000 USD worth of goods a year then we can estimate that the Trading economy is worth around $3 billion.

DIASPORA

IN 2014 the Nigerian Diaspora sent home $21 billion. Lets assume that 1/5 of the diaspora outside are Anambra (very feasible). So we can assume that an average of $3 billion enters the Anambra economy on a yearly basis from the Diaspora.

Government

The Anambra State government gets an allocation of between $250-400 million from the Nigerian derivation formula.

MISC

Lets add in manufacturing,, agriculture, education, services and assume these contribute around $500 million.

SUMMARY:

- TRADE ($ 3 billion)
- DIASPORA ($ 3-5 billion)
- GOVERNMENT ( $300-500 million)
- MISC ($ 500 million)

The Anambra economy is worth conservatively around $7 billion today or in naira equivalent 2.1 trillion naira. The state government by reaping taxes of 24 billion is taxing less than 2% of Gross Revenue which is really low.

Of course, my figures may be wrong but even if you slash it in half the State government collects less than 5% of gross revenue. What the government needs to do is gather statistics from Banks on remittance, gather data on every single truck that crosses the Niger Bridge from the west and crosses Amansea from the east to estimate all the goods that make their way into Anambra. It also needs to gather statistics on real estate and on every single property transaction which often is an alternative storage of wealth.

Estimating the GDP of Anambra at $7 billion says that there is a lot of room to grow. Now Anambra has to look at the rest of Nigeria and the world and see how to grow the economy. Anambra has to focus on industry and agri-processing areas where there is huge value addition. Moreove since Nigeria imports over $25 billion worth of goods outside of fuel.

FUTURE
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Manufacturing

Anambra could be to the South-East, and Niger Delta area states what Lagos is namely a center of manufacturing. If you replace trading with manufacturing and bring in the diaspora's brains then you get two things happening. You have larger profits and greater employment. Lets assume Anambra were to replace 50,000 traders with 1,000 factories in textiles, shoes, phone accessories, building materials, electronics like fridges and tvs, auto parts and auto assembly, food processing, pharmaceuticals, plastics its manufacturing revenue would easily top $ 10 billion and employ hundreds of thousands.

Services

With manufacturing you will get capital accumulation and you will get larger domiciled banks, investment banking, insurance. It will grow hospitality, real estate, health care and education. From $500 million your services industry could top $5 billion.

Agriculture

Lets assume that Obianos agricultural policies turns Anambra into a major producer and exporter of Rice, poultry, fish, vegetables. This could contribute between $500 million and $1 billion.

Government

With manufacturing, services, property revenue which is usually the number one revenue generator of government would rocket. The cities of Onitsha, Nnewi, Awka would be huge revenue generators with more people engaged less in street trading but in industry getting a steady salary that can be traced and taxed.Financial services will provide mortgages encouraging greater capital savings.

New Anambra Summary
- Manufacturing - $10 billion
- Services - $ 5 billion
- Agriculture - $ 500 million
- Government - $300 million

Total: $16 billion

Lets assume that government taxes this at 5% then its revenue would be around $800 million or 240 billion naira.

Please take a look and make your own contributions!!!

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