[size=14pt]FG budgets N1.6bn to compute states’ contribution to national economy[/size]
Friday, 17 September 2010 01:16 Onyinye Nwachukwu

The Federal Government said it has budgeted about N1.632 billion to carry out a “first ever” exercise that would enable states of the federation begin to compute their individual Gross Domestic Products (GDP) to the national economy.

The exercise, which starts almost immediately, would help the Federal Government monitor what each state is contributing to the national GDP, thus generating some form of competition among them. Shamsudeen Usman, minister of national planning commission, said on Thursday that the process would come in two phases: the first, covering the planning and pilot study while the second phase would comprise the training of enumerators and the actual field work survey.

He announced that the budgeted sum for the exercise is to be shared among the Federal Government, sub-national and the development partners in a 40:30:30 ratio, bringing their expected contributions to about N652,800,000, 489,600,000 and N489, 600, 000, respectively. GDP is the most comprehensive parameter for measuring the level of economic activity in any economy over a particular period and can be computed at the national and sub-national levels. Nigeria’s GDP, at the moment, is only computed at the national level but the minister said the disadvantage is that it does not provide information on the size of the sub-national economies that make up the overall GDP as is done in other countries like India, Ghana etc.

At the opening session of the first two-day sensitisation workshop on state GDP computation for Nigeria in Calabar, Usman said sub-national GDP computation which is relatively new globally is the most comprehensive and reliable measure of economic activity at the sub-national levels in federal economies. He said monitoring output at sub-national levels would serve as a basis for benchmarking the economies of the states and the Federal Capital Territory (FCT), as well as generate healthy competition amongst them on periodic basis, while providing disaggregated data and information for improved management of the states’ economies. The minister was optimistic that computing GDP at state level would help facilitate transparency and accountability as well as help monitor and evaluate key programmes of government.

He further told the gathering that state GDP is expected to be developed within the national framework, using standardised methodology and procedures to ensure consistency and credibility of the results, adding that the exercise is intended to draw from experiences and lessons from these countries. “Given the renewed interest in expanding the policy space at the lower levels of government of Nigeria, it has become more necessary than ever before for the Nigerian statistical system to further improve its data generation efforts, especially in the area of revenue and expenditure. It is in this context that efforts are being made by the Federal Government to commence the production of state GDP for Nigeria,” Usman said.

At the event, Slyvester Monye, secretary to the planning commission, noted that the computation exercise is expected to produce the quarterly and annual GDP series reflecting detailed characteristics of the economy at the sub-national level.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=13599:fg-budgets-n16bn-to-compute-states-contribution-to-national-economy&catid=85:national&Itemid=340

This is a development of gargantuan proportions. Nigeria will, for once be able to point to reliable economic statistics.
For corrupt reasons, past govts have ensured that any search for economic statistics was like looking for lions in the Arctic circle.
There is hope!

Hahaha. Good one. If this exercise is executed well, only the Naija Delta states and Lagos will have something to show. What a pity

Good exercise

janus05:

Hahaha. Good one. If this exercise is executed well, only the Naija Delta states and Lagos will have something to show. What a pity

Good exercise

Even Lagos will show a net inflow of FG cash, but its by far the best performing state as far as internally generated revenue is concerned.
Hello MetalGong.

it is a known fact that we in the middle belt, have agriculture, steel, coal, iron-it may not be as much as Oil but still it would do for employment. Im tired of the Militants holding the country hostage. We in the middle are helpless as we are in the middle.

The SE has Oil, Coal, Gas.
The NE has uranium, Oil, Gas in the Niger Basin and agriculture

The region that will surprise everyone will be the SW- they might act as if they have few resources but it is a LIE , They have Oil, Gas, billions of barrels of heavy crude. In the early 2000's Oil was found in intheir coastal states, also their high amount of educated elite.  
Only allah knows what they have been hiding

The NW will be a problem

amingafar:

it is a known fact that we in the middle belt, have agriculture, steel, coal, iron-it may not be as much as Oil but still it would do for employment. Im tired of the Militants holding the country hostage. We in the middle are helpless as we are in the middle.

The SE has Oil, Coal, Gas.
The NE has uranium, Oil, Gas in the Niger Basin and agriculture

The region that will surprise everyone will be the SW- they might act as if they have few resources but it is a LIE , They have Oil, Gas, billions of barrels of heavy crude. In the early 2000's Oil was found in intheir coastal states, also their high amount of educated elite.
Only allah knows what they have been hiding

The NW will be a problem

Even the NW is blessed. Nigeria is blessed all over but everything has been abandoned for oil & power

amingafar:

it is a known fact that we in the middle belt, have agriculture, steel, coal, iron-it may not be as much as Oil but still it would do for employment. Im tired of the Militants holding the country hostage. We in the middle are helpless as we are in the middle.

The SE has Oil, Coal, Gas.
The NE has uranium, Oil, Gas in the Niger Basin and agriculture


The NW will be a problem

Kai sharap there, amebo

janus05:

Even the NW is blessed. Nigeria is blessed all over but everything has been abandoned for oil & power

La sun o jare blessed ke

amingafar- you dey mad? tellin us what we have- naw Jk - its not our fault the govs have become so dependent on FG allocation, its changing though because the corrupt govenors are "discovering new resources" LOL realizing that they can steal even more money through ferederalism.

I also think thats a tactic by Northern Elite to not explore resources around the country- from 1970's - 2000's Not a thing besides Oil from the Niger delta was noticed Shame. Obj is no saint but atleast during his era he explored Gas and crude Oil in Ondo and Ogun state - it isnt extracted but we atleast no its there.

That being said, Diezani Allison-Madueke has said the the SW has "43 billion barrels of heavy crude"reverves

I propose Nigeria be like CANADA- which  produces 3.35 million bbl/d in  with 45% coming from "Heavy crude" reserves.