paddy_lo:

Final time i am posting this Chart so u can get it into your thick skull. . olodo rabata
Its not everything u have to comment on. . stick to Politics,romance and Tribalism section  

Onlytruth:

paddy_lo

I followed the argument between you and Beaf; it was interesting.

While I was going through your interesting statistical charts, the wise words of the late Dr Chuba Okadigbo during the second republic (when he was Shagari's adviser) quickly came to mind.

He said and I quote, "Statistics is like the bikini. What it reveals is interesting, but it is what it does not reveal that is intriguing". 

Could it be true that oil only contributes about 16% to the Nigerian GDP? I truly pray! Though practical things about
Nigeria seriously challenge that.

Can anyone show me statistics about federal government sources of revenues - total tax amount, sources of tax and rates of taxation?

If oil contributes more than any other sector in tax revenues, then it can be reasonably assumed that oil contributes more to the GDP; afterall, is the GDP existing in isolation of the FG taxation?

Critical thinking or analytical reasoning is required here to get to the truth.

I cannot be intimated or hoodwinked with statistics.

Heck, I can come up with mine! 

Interesting discourse between paddylo and Beaf. . . . Ill go with Paddylo on this one. . . . oil should be less than 20% of Nigerias GDP. . . . however, if we take away oil from the economy, all other components of GDP would have collapsed. . . Govt spending, private consumption etc. . .

Onlytruth:

paddy_lo

I followed the argument between you and Beaf; it was interesting.

While I was going through your interesting statistical charts, the wise words of the late Dr Chuba Okadigbo during the second republic (when he was Shagari's adviser) quickly came to mind.

He said and I quote, "Statistics is like the bikini. What it reveals is interesting, but it is what it does not reveal that is intriguing". 

Could it be true that oil only contributes about 16% to the Nigerian GDP? I truly pray! Though practical things about
Nigeria seriously challenge that.

Can anyone show me statistics about federal government sources of revenues - total tax amount, sources of tax and rates of taxation?

If oil contributes more than any other sector in tax revenues, then it can be reasonably assumed that oil contributes more to the GDP; afterall, is the GDP existing in isolation of the FG taxation?

Critical thinking or analytical reasoning is required here to get to the truth.

I cannot be intimated or hoodwinked with statistics.

Heck, I can come up with mine! 

ADint:

The figures are indeed more or less correct. Government revenues are based predominantly on tax (and royalties). Tax is only due on profits made and not revenue. The oil industry generates very huge profits on its revenue and thus brings in a disproportionately high amount of tax revenues compared to other sectors of the economy. The agricultural sector in Nigeria that accounts for over 40% of the GDP barely just covers its cost, leaving a small pittance for the millions of small farmers and their families to live on; hence this sector produces very minimal tax revenues.

A good example would be Ford Motor Company and Microsoft:

Last year Ford had revenues of $118 billion and profits of $3 billion.
Microsoft in the same year had revenues of $58 billion and profits of $15 billion.

Microsoft with about half of Ford’s revenues produces 5 times the profits of Ford and subsequently would generate for the various US govts. about 5 times the tax revenues as Ford.

Nigeria’s oil industry in this instance can be likened to ‘Microsoft’ and the agricultural and other sectors ‘Ford’.

Could it be true that oil only contributes about 16% to the Nigerian GDP? I truly pray! Though practical things about
Nigeria seriously challenge that.

Can anyone show me statistics about federal government sources of revenues - total tax amount, sources of tax and rates of taxation?

If oil contributes more than any other sector in tax revenues, then it can be reasonably assumed that oil contributes more to the GDP; afterall, is the GDP existing in isolation of the FG taxation?

again u are confusing issues.  ,

USA GDP is $14 Trillion dollars

In yr 2009 USA Tax reciepts was only $2Trillion dollars

so taxes or Govt spending does not equal GDP. . .Nigerians are so funny
u guys instinctively focus on Govt anytime the economy is mentioned. .

The barber,Small scale trader,mechanic,Farmer and so on have nothing to do with Govt spending but are a part of your GDP
Just like in the USA,services form 70% of GDP,Exports is only 5% or so. .
In our case exports(which is 90% oil),constitutes 16% of GDP. .why is it so hard for u cats to understand

I will make it simple. . GDP is the total value of the Goods and Services Produced in an Economy in 1 yr Measured in Dollars
Oil production is just a part of it.  .and a small part at that. .

Strategic yam reserves!!!!



Does anyone have Nigerias historical GDP chart to hand?

@Paddy lo
good points:Now youre tending towards my beliefs gradually
im sure the only issue we have is SLS

[size=14pt]Sanusi: N140bn Agric Facility Dormant[/size]

Wednesday, 02 June 2010 03:20 Thisday   
Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, said yesterday that out of the about N200 billion earmarked to be disbursed as agricultural loans to farmers in the country, only N60b have been utilized two years after.

The CBN had in the first quarter of last year created N200 billion Commercial Agricultural Credit Scheme (CACS), in collaboration with the Federal Government. Despite the increase in the number of the participating banks from two to five, many of the target beneficiaries could not access the fund for various reasons including bureaucracy and their inability to meet the conditions of the individual banks.
[size=13pt]Sanusi said agriculture was 42 per cent of GDP of the country and if the sector had just 20 per cent increase in the GDP, it would have improved the country’s GDP considerably higher than at any point in the last 10 years.
Speaking yesterday at the third edition of the annual Partnership on Trade, Industry and Commerce (POTICO 111) organized by the US Embassy in Nigeria, First Bank Plc and Bank of Industry and facilitated by Rimsom Associates, the CBN governor declared that elsewhere on the continent, agriculture was a top priority unlike in Nigeria.[/size]He said for there to be a sustainable development, there must be focus on the value chain that agriculture creates and he gave example of the Zimbabwean farmers brought by the Kwara State government to buttress his point.
He said within a short time of their activities in Kwara State, a starch making firm in a South-eastern state and a dairy firm in Lagos rely on the products of the Zimbabwean farmers to run their industries.

“This kind of value chain is what provides finance. A bank like First Bank, UBA or any bank would easily lend money to a farmer, who has a target market in a multinational corporation that has guaranteed his products. That increases the demand for cattle, it increases the demand for animal feed and all along that value chain, it creates jobs and incomes. So, focusing on the value chain is the greatest way of iimproving incomes and addressing poverty,” Sanusi said.

He said 80 per cent of tomatoes produced in Kadara in Kano State by local farmers are lost because they are storage facilities and no decent transportation system to move the products.

He said it was not a problem of the banks not lending money to agriculture, but the issue is how to address the risks in agricultural loans because the banks would still not lend if they were not convinced that the farmers would come back.
Sanusi said he met with top bankers at the weekend and they have put on the table what he called the Nigerian Incentive-based Risk Sharing System for Agriculture, which he proposes to be a bulwark against defaults in the sector.

He said they would set up a number of guarantees that would enable the small scale farmers to access agricultural loans.
In addition to this, Sanusi said they have also proposed an agricultural insurance that would allow insurance firms assess risks of the sector.
However, despite the complaints of the sector, he said there were many companies in Nigeria today that are borrowing at single digit rates.

He gave the example of the Dangote Group, which he said have facilities of about N110b from the banks at 8.5 per cent, for which he added a grateful President of the Group, Alhaji Aliko Dangote has called to thank him.
He added that overall, interest rates have crashed courtesy of CBN’s  policy that very high rates are inconsistent with a sustainable development.

He said the high cost of the overheads in the banking sector owing to deplorable infrastructure was responsible for the high interest rates in order for them to meet up.
Sanusi said they have been advising banks to pool together in providing some services so as to reduce overheads adding that the focus in the last one year has been how to make lending profitable to sustain a post-crisis economy.
Earlier in her opening remarks, United States Ambassador to Nigeria, Dr. Robin Sanders, said her country was willing to assist Nigeria in her quest to attain food security.

Sanders noted that previous years dialogue have been successful because it has increased the participation of small scale entreprises in Nigeria in the Africa Growth and Opportunity Act (AGOA).
She said the initiative has facilitated a number of agro-allied firms in the country and it held a lot of promise to Nigeriens with entrepreneurial skills to realize their potential.

Also speaking, Managing Director of Bank of Industry, Mrs. Evelyn Oputu said one of the deliverables of the annual dialogue was the opening of the AGOA office at the BOI office complex in Marina.
Oputu said the AGOA office trains about 50 Nigerians monthly in various fields of entrepreneurial skills.
In his own speech, the Group Managing Director of First Bank Plc, Mr. Stephen Onasanya said the problem with agricultural loans in the country was that once government money was branded, it would not be easy getting it back.

He said First Bank Agricultural products are labeled at 9 per cent, but that the problem of ignorance was inhibiting the small-holder farmers from assessing its facility.
However, he said there are facilities for peasant farmers as well as fresh graduates, who have interest in taking to agriculture adding that there is a large liquidity where farmers borrow from the banks.

paddy_lo:

@Beaf

u are simply too daft for words. .

No wonder they claim most Nigerian graduates are unemployable. .

sigh. .

paddy_lo:

again u are confusing issues.  ,

[b]USA GDP is $14 Trillion dollars

In yr 2009 USA Tax reciepts was only $2Trillion dollars

so taxes or Govt spending does not equal GDP. . .Nigerians are so funny
u guys instinctively focus on Govt anytime the economy is mentioned. .

The barber,Small scale trader,mechanic,Farmer and so on have nothing to do with Govt spending but are a part of your GDP
Just like in the USA,services form 70% of GDP,Exports is only 5% or so.  .
In our case exports(which is 90% oil),constitutes 16% of GDP.  .why is it so hard for u cats to understand

I will make it simple. . GDP is the total value of the Goods and Services Produced in an Economy in 1 yr Measured in Dollars
Oil production is just a part of it.  .and a small part at that. . [/b]

Nobody equated GDP with tax revenues. At least I didn't. However, notice that the US example you posted made perfect sense: tax is approximately at 14% of the GDP. You can decide to take a closer look and to isolate sectors by their contribution to the tax revenues. That would make a more interesting finding!

My argument is that there is no other single sector that contributes more to Nigeria's tax revenue (and by implication GDP) than the oil industry.
And if that is the case, who cares about what other sectors contribute, especially since they are not reliably verifiable?
The money being shared by the government is the issue. Where are they coming from?

Is it oil or agriculture? Methinks it is oil

Eziachi:

I am not an economist, neither an expert on the subject, but what I want to know is how this figure come about in country where there is no statistics or data about just anything?
[b]Why is it that the economy of powerful nations always seem to grow between 1.5-2.5% and then we are told the likes of Nigeria is close to double figure and they still get aids from those their economy grows very little? [/b]I read recently that Tanzania's own economy is growing by 8%too.
This figure always seems to come from IMF and their other rogue lenders. Whether it has to be that they want to be paid more by their creditors? Just asking

Justcash:

When a country meets it's "Optimum" level of economic growth and development, some degree of "saturation" sets in. "Saturation" is marked by the urge to connect another country's economy to a host country's economy (in the form of outward FDI or trade) to sustain growth which has slowed down. This connection is naturally ensured due to several factors which includes the intensity of economic competition in an economy. This normally happens in very matured economies. When such happens, GDP growth slows down because of loss of investments, growth in unemployment, decrease in In tax revenue, increase in import and reduction in government expenditure due to decrease in national income (Some countries like the united states normally resort to borrowing from other countries).
A good example is the exodus of Several American companies to the Asian economies, especially China after they liberalized their political system, in search of competitive edge. Alot of American companies moved from the United states and created enormous GDP growth in China. It is not that these companies don't pay taxes to the United states. They do. But the degree at which they do may be restricted by the host country.

However, a matured economy is normally marked by slow growth compared to countries that have not reached their "Optimum" potentials, like Nigeria.

For example, if the electricity problem is solved in Nigeria, Nigeria's GDP will naturally grow, because more companies will flow in to take advantage of that, our cheap labor and population size. As companies flow in, especially manufacturing companies, they reduce the growth of the countries they existed in before.
It is like buying and selling. When someone comes to your shop to buy something, someone else has lost the person as a customer. It is now your ability to make the person to remain a loyal customer that matters. In business, While you become rich, someone else is getting poor. Liken it to countries economies.

As Nigeria puts the right things in place, inflow of FDI, domestic investments etc increases. This stimulates a huge GDP growth. While in Countries with saturated economies, they struggle, using business diplomacy to sustain a favorable level of GDP growth. Sometimes, they resort to outright exploitation of countries with insensitive leaders like Nigeria. I read that when Korean companies get construction contracts in Nigeria, they take the production of construction materials back to Korea to produce, there by sustaining industries and creating jobs in Korea at the detriment of Nigeria. They export these materials, while Nigeria imports them, then they use a % of their workforce to install them. That is what we call 419 at an international diplomatic level. The maga in this case is Nigeria.

Beaf:

What worries me most about these latest Nigerian figures is the way they have jumped out of thin air like something invoked by TB Joshua!
Every body with a little sense knows for definite that Nigeria is a mono-product economy. Just a couple of years ago, it was known that oil accounted for 90%+ of our GDP. So what happened that its suddenly 16% percent, when did we rapidly diversify our economy and why did someone forget to inform the World? I ask that, because we are still a mono-product economy, indeed the title of the current thread makes it plain as day; "Nigerian Economy Grew 7.23% In First Quarter On Oil".
And to think I was of the opinion that Yar Adua was called Baba Go Slow, because absolutely nothing was happening! Not knowing that economic diversification was rocketing ahead, in fact while Yar Adua slept his way through 2.5 years, the economy simply reacted and diversified! Wow!

The growth of our GDP doubled in a year from oil alone. . . At 16? Very strange! Maybe the next miracle indeed!

Every authority seems to have their own figures for the percentage of oil in Nigeria's GDP, eg CIA 's  the World Factbook kindly puts it at about 50%. We know it is much more. Someone is actually funny enough to claim that agriculture acounts for 42% of our GDP; I am yet to see money from yam sales being distributed in Abuja. I am yet to see the smiling farmers from Kafanchan or Obolo-Afor; or maybe the sudden increase in their contribution to the Nigerian economy somehow doesn't translate to more money in their pockets.

We don't even know how many Nigerians there are (as distinct from goats and cows, which have been valid statistics in each of our cencus's to date).
Maybe we will soon have strategic yam reserves, rather than the current strategic oil reserves.

Rubbish!

xterra2:

And to think I was of the opinion that Yar Adua was called Baba Go Slow, because absolutely nothing was happening! Not knowing that economic diversification was rocketing ahead, in fact while Yar Adua slept his way through 2.5 years, the economy simply reacted and diversified! Wow!
U always hate Yaradua leave hom to rest in peace, Okay Baba go slow is still better than your Jonathan bas.stad

Beaf:

They say, a toad doesn't jump in the daylight for nothing. . .
This sudden bump up for agriculture portends something. Could the missing link be the 200 billion agric fertilizer loan money? Questions!!

How can a country that spends $3 billion annually on the importation of the most basic food items, claim that 42% of its GDP is due to the very same agriculture? In other words, rather than enrich the country, we get poorer by $3 billion US every year from agriculture. So what sort of voodoo math would create a contribution of 42% to our GDP?
My simple take on this excreta is that someone is manufacturing figures to cover up "something" in the near future.

Nigeria, land of magic. http://www.africanagricultureblog.com/2007/11/why-nigeria-imports-3-billion-of-food.html

Beaf:

I'm a bastar'd because I mentioned Yar Adua?
Are some of you people mentally damaged or what? Do you think Yar Adua was the President of your family alone?
I bet you mastur.bate to Yar Adua's picture, don't you? Id!ot.

I pity you and people that think like you.

U always hate Yaradua leave hom to rest in peace, Okay Baba go slow is still better than your Jonathan bas.stad