The nation recently released her maiden Competitive Index ranking for the 36 states and FCT. This is important because it will help the states plan properly and develop growth-friendly policies. While some people are celebrating this release, another group are definitely fiddling with their mind.

According to the publisher, NCCN, the statistics will help 'spur growth-friendly policies'. For this reason, this article will examine the reliability of this statistics. This is because planning with unreliable data is an exercise in futility.

Before we proceed, we need to understand what Competitive Index is and what it measures. According to Economic World Forum, the global body set up to measure the competitive index for countries, Competitive Index refers to the set of institutions, policies and factors that determine the level of productivity of a country. It measures the strength of the factors driving productivity and prosperity.

It does not measure the economic strength of any state, but rather how certain selected factors called pillars works together to determine the productivity of each state. This level of productivity will in turn set the level of prosperity that can be reached by the economy.

The WEF uses 12 pillars to arrive at this competitive index.

1. INSTITUTION
Institutional environment is determined by legal and administrative framework within which individuals, firms and government interact to generate wealth.

2. INFRASTRUCTURE
Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy.

3. MACROECONOMIC ENVIRONMENT
The stability of the macroeconomic environment is important for business. A firm cannot function effectively when inflation rates are out of control.

4. HEALTH AND PRIMARY EDUCATION
A healthy workforce is vital for a country's competitiveness.

5. HIGHER EDUCATION AND TRAINING
Higher education and training is crucial for economies that want to move up the value chain.

6. GOODS MARKET EFFICIENCY
In flow of FDI is an indicator of how efficient the goods market is.

7. LABOUR MARKET EFFICIENCY
This ensures that labour are allocated to their most effective use in the economy and provided with incentives to give their best effort.

8. FINANCIAL MARKET DEVELOPMENT
It ensures that financial resources are allocated to their most productive uses, to investments with the greatest ROI. An efficient financial market ensures private investments.

9. TECHOLOGY READINESS
It measures the agility with which economy adopts existing technology.

10. MARKET SIZE
Measures the number of customers and prospective customers both within and outside the country.

11. BUSINESS SOPHISTICATION
Two elements are used to measure this: the quality of a country's overall business network (quality and quantity of local suppliers and extent of their interactions) and firms' operations and strategies (branding, marketing, distribution, production of unique and sophisticated products)

12. INNOVATION
Capacity for innovation is the main source of long term growth.

A more competitive economy is one that is likely to grow faster over time.

www.reports.weforum.org/global-competitiveness-report-2014-2015/methodology/

The report released by NCCN, the body in charge of Competitive index in Nigeria shows that Lagos in first position tops the overall ranking, with Delta in second position, Rivers, Niger and Enugu States in 3rd, 4th and 5th positions respectively.

Ranking under Infrastructure pillar, shows that Rivers (1st) was ranked above Lagos (2nd), while Jigawa (9th) above Anambra (17th), war-torn Adamawa (24th) was ranked above Kaduna (30th) and Borno (33rd) above Katsina (34th).

In Economy, Sokoto (3rd) was ranked ahead of Ogun (11th) and Anambra (16th), while Borno (19th) ahead of Delta (23rd) and Kaduna (28th).

In Institution, Niger (1st) was ahead of Lagos (25th), while Borno (20th) ahead of Anambra (27th) and Kaduna (33rd).

In Education, Abia (1st) was ahead of Anambra (3rd), Ekiti (7th) and Lagos (8th), while Borno (34th) ahead of Katsina (35th) and Sokoto (37th).

In Health, Borno (31st) suffering from malnutrition as a resulting of a ravaging war, was ranked ahead of Imo (32nd), while in migration, FCT (1st) was ranked ahead of Enugu (3rd) and Lagos (18th), a city with an estimated influx of 750,000 people annually, while Borno (33rd) ahead of Taraba (37th).

In sub-pillars under Infrastructure, in airport ranking, Enugu, FCT, Kano, Lagos and Rivers jointly sit in top position while Anambra (17th) ahead of Osun (27th), in waste management, Abia (10th) was ahead of Kaduna (24th) and FCT (18th).

In business sophistication, Katsina was ranked number 1 ahead of Lagos (6th), Abia(7th) and Anambra (33rd).

In security and instability, Yobe (20th) was ranked ahead of Anambra (27th), while Borno (36th) and Bayelsa (37th), leaving Delta, hub of recent Avengers activities at 7th.

www.nccnigeria.org/research-and-publication/nccn-sub-national-report-abridged/

A critical scrutiny of the above ranking will show you that large proportion doesn't reflect reality. Imagine Katsina was ranked ahead of Lagos in business sophistication, while Abia was ranked ahead of FCT in waste management.

This means the procedure used in collecting the data is faulty. So we are going to examine this in detail.

A sample of 8147 households were surveyed, 2000 private businesses, out of which 1820 responded, showing a response rate of 91%.

https://www.thisdaylive.com/index.php/2017/11/03/lagos-delta-rivers-lead-in-sub-national-competitive-index/

According to Open Data for Africa, Nigerian total regular household statistics was estimated at 28,197,085 in 2016.

www.nigeria.opendataforafrica.org/xspplpb/nigeria-census

This means that only 220 households were surveyed for each state, plus the FCT. This sample size is too small to be used to make reliable generalization. Falling behind the appropriate sample size by 45.2%.

With a margin error of 5%, at 95% confidence level, using Adjusted Sample Size, only atleast a sample size of 385 households can be used to make reliable generalization for each state, a total of at least, 14, 245 for the 36 states and FCT.

NCCN failed this best practices in probability sampling. Maybe they were constrained by funds.

Out of the 12 pillars listed by WEF, NCCN failed to consider macro economic environment, goods market efficiency, this would have given Anambra an edge as one of the largest recipient of FDI in Nigeria, Labour market efficiency, financial market efficiency which measured using private investments would have pushed Anambra, Abia, Ogun further up. Technological readiness which was omitted would have also pushed Anambra, Abia, Ogun up. Anambra much more because FDI is the major source of foreign technology.
Market size which would have pushed Anambra and Abia was as well omitted. The market for SE products are so massive, spreading all over the country, into ECOWAS and little incursion into EU and Asia. Innovative capacity was as well omitted. Innonson Motors in demonstrated Anambra possesses this capacity when it innovated spare parts for the NAF's Alpha jets. This omission as well made Anambra ranking suffer.

Out of 12 pillars used by WEF in their rainking, NCCN used only 5. This represents 41.7%

We will not tell you whether this Competitive Index is reliable or not. We are leaving you that decision.

BY: #SouthEastFacts

Major business deals are now carried out in katsina state.

Investor confidence is at an all time high in Katsina. The state is the highest recipient of FDI in Nigeria.

NCP:
Major business deals are now carried out in katsina state.

Investor confidence is at an all time high in Katsina. The state is the highest recipient of FDI in Nigeria.

Is that what made them sophiscated?

Name one sophisticated product produced in Katsina. Anambra manufactures commercial and military vehicle, Ogun manufactures combact military vehicles.

Katsina doesn't have the structure to be ranked first in business sophistication, using WEF criteria.

Pls provide link to the source

SouthEastFacts:
The nation recently released her maiden Competitive Index ranking for the 36 states and FCT. This is important because it will help the states plan properly and develop growth-friendly policies. While some people are celebrating this release, another group are definitely fiddling with their mind.

According to the publisher, NCCN, the state will help 'spur growth-friendly policies' for this reason, this article will examine the reliability of this statistics. This is because planning with unreliable data is an exercise in futility.

Before we proceed, we need to understand what Competitive Index is and what it measures. According to Economic World Forum, the global body set up to measure the competitive index for countries, Competitive Index refers to the set of institutions, policies and factors that determine the level of productivity of a country. It measures the strength of the factors driving productivity and prosperity.

It does not measure the economic strength of any state, but rather how certain selected factors called pillars works together to determine the productivity of each state. This level of productivity will in turn set the level of prosperity that can be reached by the economy.

The WEF uses 12 pillars to arrive at this competitive index.

1. INSTITUTION
Institutional environment is determined by legal and administrative framework within which individuals, firms and government interact to generate wealth.

2. INFRASTRUCTURE
Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy.

3. MACROECONOMIC ENVIRONMENT
The stability of the macroeconomic environment is important for business. A firm cannot function effectively when inflation rates are out of control.

4. HEALTH AND PRIMARY EDUCATION
A healthy workforce is vital for a country's competitiveness.

5. HIGHER EDUCATION AND TRAINING
Higher education and training is crucial for economies that want to move up the value chain.

6. GOODS MARKET EFFICIENCY
In flow of FDI is an indicator of how efficient the goods market is.

7. LABOUR MARKET EFFICIENCY
This ensures that labour are allocated to their most effective use in the economy and provided with incentives to give their best effort.

8. FINANCIAL MARKET DEVELOPMENT
It ensures that financial resources are allocated to their most productive uses, to investments with the greatest ROI. An efficient financial market ensures private investments.

9. TECHOLOGY READINESS
It measures the agility with which economy adopts existing technology.

10. MARKET SIZE
Measures the number of customers and prospective customers both within and outside the country.

11. BUSINESS SOPHISTICATION
Two elements are used to measure this: the quality of a country's overall business network (quality and quantity of local suppliers and extent of their interactions) and firms' operations and strategies (branding, marketing, distribution, production of unique and sophisticated products)

12. INNOVATION
Capacity for innovation is the main source of long term growth.

A more competitive economy is one that is likely to grow faster over time.

The report released by NCCN, the body in charge of Competitive index in Nigeria shows that Lagos in first position tops the overall ranking, with Delta in second position, Rivers, Niger and Enugu States in 3rd, 4th and 5th positions respectively.

Ranking under Infrastructure pillar, shows that Rivers (1st) was ranked above Lagos (2nd), while Jigawa (9th) above Anambra (17th), war-torn Adamawa (24th) was ranked above Kaduna (30th) and Borno (33rd) above Katsina (34th).

In Economy, Sokoto (3rd) was ranked ahead of Ogun (11th) and Anambra (16th), while Borno (19th) ahead of Delta (23rd) and Kaduna (28th).

In Institution, Niger (1st) was ahead of Lagos (25th), while Borno (20th) ahead of Anambra (27th) and Kaduna (33rd).

In Education, Abia (1st) was ahead of Anambra (3rd), Ekiti (7th) and Lagos (8th), while Borno (34th) ahead of Katsina (35th) and Sokoto (37th).

In Health, Borno (31st) suffering from malnutrition as a resulting of a ravaging war, was ranked ahead of Imo (32nd), while in migration, FCT (1st) was ranked ahead of Enugu (3rd) and Lagos (18th), a city with an estimated influx of 750,000 people annually, while Borno (33rd) ahead of Taraba (37th).

In sub-pillars under Infrastructure, in airport ranking, Enugu, FCT, Kano, Lagos and Rivers jointly sit in top position while Anambra (17th) ahead of Osun (27th), in waste management, Abia (10th) was ahead of Kaduna (24th) and FCT (18th).

In business sophistication, Katsina was ranked number 1 ahead of Lagos (6th), Abia(7th) and Anambra (33rd).

In security and instability, Yobe (20th) was ranked ahead of Anambra (27th), while Borno (36th) and Bayelsa (37th), leaving Delta, hub of recent Avengers activities at 7th.

A critical scrutiny of the above ranking will show you that large proportion doesn't reflect reality. Imagine Katsina was ranked ahead of Lagos in business sophistication, while Abia was ranked ahead of FCT in waste management.

This means the procedure used in collecting the data is faulty. So we are going to examine this in detail.

A sample of 8147 households were surveyed, 2000 private businesses, out of which 1820 responded, showing a response rate of 91%.

The total regular household statistics was estimated at 28,197,085 in 2016. This means that only 220 households were surveyed for each state, plus the FCT. This sample size is too small to be used to make reliable generalization. Falling behind the appropriate sample size by 45.2%.

With a margin error of 5%, at 95% confidence level, using Adjusted Sample Size, only atleast a sample size of 385 households can be used to make reliable generalization for each state, a total of at least, 14, 245 for the 36 states and FCT.

NCCN failed this best practices in probability sampling. Maybe they were constrained by funds.

Out of the 12 pillars listed by WEF, NCCN failed to consider macro economic environment, goods market efficiency, this would have given Anambra an edge as one of the largest recipient of FDI in Nigeria, Labour market efficiency, financial market efficiency which measured using private investments would have pushed Anambra, Abia, Ogun further up. Technological readiness which was omitted would have also pushed Anambra, Abia, Ogun up. Anambra much more because FDI is the major source of foreign technology.
Market size which would have pushed Anambra and Abia was as well omitted. The market for SE products are so massive, spreading all over the country, into ECOWAS and little incursion into EU and Asia. Innovative capacity was as well omitted. Innonson Motors in demonstrated Anambra possesses this capacity when it innovated spare parts for the NAF's Alpha jets. This omission as well made Anambra ranking suffer.

Out of 12 pillars used by WEF in their rainking, NCCN used only 5. This represents 41.7%

We will not tell you whether this Competitive Index is reliable or not. We are leaving you that decision.

Fire the statistician and the Editor!

It was a fraudulent Ranking

SouthEastFacts:
The nation recently released her maiden Competitive Index ranking for the 36 states and FCT. This is important because it will help the states plan properly and develop growth-friendly policies. While some people are celebrating this release, another group are definitely fiddling with their mind.

According to the publisher, NCCN, the state will help 'spur growth-friendly policies' for this reason, this article will examine the reliability of this statistics. This is because planning with unreliable data is an exercise in futility.

Before we proceed, we need to understand what Competitive Index is and what it measures. According to Economic World Forum, the global body set up to measure the competitive index for countries, Competitive Index refers to the set of institutions, policies and factors that determine the level of productivity of a country. It measures the strength of the factors driving productivity and prosperity.

It does not measure the economic strength of any state, but rather how certain selected factors called pillars works together to determine the productivity of each state. This level of productivity will in turn set the level of prosperity that can be reached by the economy.

The WEF uses 12 pillars to arrive at this competitive index.

1. INSTITUTION
Institutional environment is determined by legal and administrative framework within which individuals, firms and government interact to generate wealth.

2. INFRASTRUCTURE
Extensive and efficient infrastructure is critical for ensuring the effective functioning of the economy.

3. MACROECONOMIC ENVIRONMENT
The stability of the macroeconomic environment is important for business. A firm cannot function effectively when inflation rates are out of control.

4. HEALTH AND PRIMARY EDUCATION
A healthy workforce is vital for a country's competitiveness.

5. HIGHER EDUCATION AND TRAINING
Higher education and training is crucial for economies that want to move up the value chain.

6. GOODS MARKET EFFICIENCY
In flow of FDI is an indicator of how efficient the goods market is.

7. LABOUR MARKET EFFICIENCY
This ensures that labour are allocated to their most effective use in the economy and provided with incentives to give their best effort.

8. FINANCIAL MARKET DEVELOPMENT
It ensures that financial resources are allocated to their most productive uses, to investments with the greatest ROI. An efficient financial market ensures private investments.

9. TECHOLOGY READINESS
It measures the agility with which economy adopts existing technology.

10. MARKET SIZE
Measures the number of customers and prospective customers both within and outside the country.

11. BUSINESS SOPHISTICATION
Two elements are used to measure this: the quality of a country's overall business network (quality and quantity of local suppliers and extent of their interactions) and firms' operations and strategies (branding, marketing, distribution, production of unique and sophisticated products)

12. INNOVATION
Capacity for innovation is the main source of long term growth.

A more competitive economy is one that is likely to grow faster over time.

The report released by NCCN, the body in charge of Competitive index in Nigeria shows that Lagos in first position tops the overall ranking, with Delta in second position, Rivers, Niger and Enugu States in 3rd, 4th and 5th positions respectively.

Ranking under Infrastructure pillar, shows that Rivers (1st) was ranked above Lagos (2nd), while Jigawa (9th) above Anambra (17th), war-torn Adamawa (24th) was ranked above Kaduna (30th) and Borno (33rd) above Katsina (34th).

In Economy, Sokoto (3rd) was ranked ahead of Ogun (11th) and Anambra (16th), while Borno (19th) ahead of Delta (23rd) and Kaduna (28th).

In Institution, Niger (1st) was ahead of Lagos (25th), while Borno (20th) ahead of Anambra (27th) and Kaduna (33rd).

In Education, Abia (1st) was ahead of Anambra (3rd), Ekiti (7th) and Lagos (8th), while Borno (34th) ahead of Katsina (35th) and Sokoto (37th).

In Health, Borno (31st) suffering from malnutrition as a resulting of a ravaging war, was ranked ahead of Imo (32nd), while in migration, FCT (1st) was ranked ahead of Enugu (3rd) and Lagos (18th), a city with an estimated influx of 750,000 people annually, while Borno (33rd) ahead of Taraba (37th).

In sub-pillars under Infrastructure, in airport ranking, Enugu, FCT, Kano, Lagos and Rivers jointly sit in top position while Anambra (17th) ahead of Osun (27th), in waste management, Abia (10th) was ahead of Kaduna (24th) and FCT (18th).

In business sophistication, Katsina was ranked number 1 ahead of Lagos (6th), Abia(7th) and Anambra (33rd).

In security and instability, Yobe (20th) was ranked ahead of Anambra (27th), while Borno (36th) and Bayelsa (37th), leaving Delta, hub of recent Avengers activities at 7th.

A critical scrutiny of the above ranking will show you that large proportion doesn't reflect reality. Imagine Katsina was ranked ahead of Lagos in business sophistication, while Abia was ranked ahead of FCT in waste management.

This means the procedure used in collecting the data is faulty. So we are going to examine this in detail.

A sample of 8147 households were surveyed, 2000 private businesses, out of which 1820 responded, showing a response rate of 91%.

The total regular household statistics was estimated at 28,197,085 in 2016. This means that only 220 households were surveyed for each state, plus the FCT. This sample size is too small to be used to make reliable generalization. Falling behind the appropriate sample size by 45.2%.

With a margin error of 5%, at 95% confidence level, using Adjusted Sample Size, only atleast a sample size of 385 households can be used to make reliable generalization for each state, a total of at least, 14, 245 for the 36 states and FCT.

NCCN failed this best practices in probability sampling. Maybe they were constrained by funds.

Out of the 12 pillars listed by WEF, NCCN failed to consider macro economic environment, goods market efficiency, this would have given Anambra an edge as one of the largest recipient of FDI in Nigeria, Labour market efficiency, financial market efficiency which measured using private investments would have pushed Anambra, Abia, Ogun further up. Technological readiness which was omitted would have also pushed Anambra, Abia, Ogun up. Anambra much more because FDI is the major source of foreign technology.
Market size which would have pushed Anambra and Abia was as well omitted. The market for SE products are so massive, spreading all over the country, into ECOWAS and little incursion into EU and Asia. Innovative capacity was as well omitted. Innonson Motors in demonstrated Anambra possesses this capacity when it innovated spare parts for the NAF's Alpha jets. This omission as well made Anambra ranking suffer.

Out of 12 pillars used by WEF in their rainking, NCCN used only 5. This represents 41.7%

We will not tell you whether this Competitive Index is reliable or not. We are leaving you that decision.

Most of these people do online sampling which is very inaccurate.

SIRTee15:
Pls provide link to the source

We have provided all the links.
#Thanks

Utter Rubbish

Hmmmmm pathetic

You did a good job here. When i read through that statistics, it was obvious that it's spurious. I suspected ladened researchers or samplers, now you made it clear that the statistical method is faulty.
Nice one bro.

Nice one. I never take statistics from Nigeria serious. It obviously these guys just sit in the office and aportion figures as they pls. Your write up here is revealing.

TheHistorian:
Utter Rubbish

Is it the Index Or The article?