eakenbor:
Our entire GDP is 123 trn naira (405 bn USD). Check google. So you mean our non oil GDP will now become 104 trn naira (85%) of the total GDP? Use your brain please!

nextprince:
Abeg, where are the Economics experts?

Because I don't understand anything in this report laced with so many professional jargon.

I'm seeing 2017 budget and 104trn, even though the budget is around 7trn, I'm confused. Though I know it has to do with improvement on what is on ground, these jargons are not allowing me to understand the message. As in what exactly is GDP, in a layman language?

shervydman:


whats exactly ur point?...........cos, it seems u don't understand whats going on here.

eakenbor:
Oil accounts for over 70% of our GDP and not 15%. Use your brain!

shervydman:


lol......Nigerians won't kill me on a good Sunday morning.

federal govt of Nigeria is not just APC but comprises of legislative, judiciary and executive arms.

please, read the link......https://en.wikipedia.org/wiki/Politics_of_Nigeria

stop all these ur party politics

juman:


You are funny.

This is a developing country.
Federal government means the president.
The president represent his party.

shervydman:


aw can u explain the 2nd emboldened statement in relation to the first?

juman:


You are funny.

This is a developing country.
Federal government means the president.
The president represent his party.

APC is a confused party that destroyed nigerian economy but does not know what to do to enliven the economy back.

Bede2u:
money can also be generated thru taxes. No? Taxes however dont form part of GDP

mrvitalis:
This is our problem we have a gdp of close to a hundred trillion and yet taxing out 40 trillion to run our country is hard

Either the money get stolen before they even get to the government or we have had some very compotent government since 1999

All this is all a grand plan to get the people do be uninterested in government since they contribute little

shervydman:

yes.....money can be generated through taxes. but u need to understand that taxes and GDP are two parallel terms, they can never be the same.

taxes are meant for financing government expenditure like building of roads and basic amenities.

GDP on the other hand is the contribution of each sector/industries to the economy.

taxes does not contribute to the economy but contributes to the government budget or expenditure.

Bede2u:

Yes u are right. But u did not specify it like dis b4

Bede2u:
money can also be generated thru taxes. No? Taxes however dont form part of GDP

shervydman:

yes.....money can be generated through taxes. but u need to understand that taxes and GDP are two parallel terms, they can never be the same.

taxes are meant for financing government expenditure like building of roads and basic amenities.

GDP on the other hand is the contribution of each sector/industries to the economy.

taxes does not contribute to the economy but contributes to the government budget or expenditure.

jaytime:


I think this is where you both are getting it wrong. Taxes don't fly in from heaven, they are derived from GDP. It is one of the means through which government gets income(revenue) from GDP (which is the sum total output of every economic entity) to finance its programmes and policies for the benefit of everybody that contributed to the GDP.
That's why GDP and tax always change in the same direction.
In this particular Nigerian case, government is invariably targeting increasing non oil revenue and tax will form a chunk of that. So they have to increase non oil income (output) first.

shervydman:

tax is derived from GDP? how?...........I thought tax is derived from personal or corporate income and indirect tax is levied on goods and services?


i'll like u to explain more on how its gotten from GDP.

jaytime:


Brother, tax is a component of GDP. Before you are taxed, you must have been involved in some economic activities and earned income; isn't it? Now that income that you earned is it not part of GDP? Then government taxes you and that your tax now forms part of government spending which is an integral part of GDP. A mere look at the later part of your question will tell you more about what I'm explaining here. Those personal, corporate income and the goods and services you are talking about, are they not components of GDP?
Don't forget what you were taught in your o'level economics that GDP = C + G + I + NX; where C is all private consumption, or consumer spending in the country, G is the sum of government spending, I is the sum of all the country's investment, including businesses capital expenditures and NX is the country's total net exports, which is total exports minus total imports.
I'm sure from that equation you can identify where direct and indirect taxes you talked about fall into.