₦airaland Forum

so they are all part of GDP. I was expecting soludo to widen the tax bracket and capture taxes from goods sold and brought in onitsha , even tenancy tax but he fails. I prays otti won't neglect that area.

@Workch & Iamgrey5..

Very educative arguments..

Keep it up, we are learning..

Workch:
you cannot estimate anything.

You can simply get the consumption of any sector my looking at the VAT coming from there. You cannot get that of open market.

It's unestimatable.

How do you get the investment of an average trader in Onitsha? tell me.

You can always estimate by carrying out a survey.

It is the same technique used to carry out a survey for a presidential poll, it's not 100% accurate.

Workch:
How will get the consumption and investment figures contributed by LADIPO market?

Like the name implies, Gross Domestic Product increases because of goods produced in a country. Imports are even subtracted from the GDP.

Now let's get it straight. Those selling at the market are at best wholesalers. The bulk of them are retailers.

At a typical construction market, traders sell Dangote cement, BUA cement or larfage. Whatever they have to sell in the market came from a source- Dangote, Bua or Larfage. Dangote group is a formal company that gives a near accurate estimate of the quantity of cement produced. His major business partners and distributors know how much they distribute. They know how many trucks of Dangote cement that are going to Anambra State for instance. Whatever the final consumers get at the market comes from those trucks. That's where they get the figures.

A typical grocery market has Peak Milk, Beloxxi (crackers) biscuits, Milo, Indomie produced in Nigeria. The companies supplying the markets are formal and have data of how many trucks they distributed. Whatever you buy in the market comes from those sources.

Even to subtract imports, the bulk of things brought into the country passed through check at the port and are recorded. That's how Nigeria is able to calculate its balance of payment deficit. No one is going to go to mechanic village to count how many Toyota Camry engines are there because whatever Toyota engine they have passed through check and was recorded at the port.

To get the prices the products go for in the market is easy. The prices of two or three traders can be used. You can't sell a carton of Nasco cornflakes for 12,000 naira when others in your environment are selling for 10,000 naira. It is why I brought in the ANAP polls scenario of asking only a few percentage of the population.

What may actually affect the calculation of the GDP are small-scale production. Like the farmer who processes her Garri, the student who bakes and sells her chin-chin, peanut and cake and the tailor who produces clothes for people daily. However, the impact of small-scale enterprises engaged in production cannot be compared to those of medium and large scale enterprises. It is also difficult to account for small-scale businesses in advanced countries like Us, UK , especially China etc.

Smuggling and piracy can also affect the figures of imports.

Iamgrey5:
You can always estimate by carrying out a survey.

It is the same technique used to carry out a survey for a presidential poll, it's not 100% accurate.

economic indicators are different from presidential polls. You cannot just into thr market and be asking people the worth of their products and how much they per day. Think na

As a matter of facts, government in Nigeria doesn't do that. They are only interested in collect fixed taxes that does reflect the value of the person paying it and hence cannot get a get a clear figure with expect to how much they contribute to the GDP.

If you want to know the GDP contribution of onitsha main market to Anambra state, you must know the average volume of goods in that market annually and to know that, you will need to create a database. Which of course does not exist in Nigeria

N3TRAL:
Like the name implies, Gross Domestic Product increases because of goods produced in a country. Imports are even subtracted from the GDP.

GDP does not only entails the amount of goods produced in the country. If for example I import tomatoes from Japan, it should reflect in the GDP of the country. GDP is the amount of products and service, whether produced or imported that in a country or state. The whole value of goods in an open market should ordinarily reflect on the GDP of that state but their no way for state or NBS government to ascertain the figure since they don't pay VAT on them hence we lack adequate Data to know for sure how much Ladipo, onitsha main ma2, Ariaria etc contributes to GDP

Now let's get it straight. Those selling at the market are at best wholesalers. The bulk of them are retailers.

At a typical construction market, traders sell Dangote cement, BUA cement or larfage. Whatever they have to sell in the market came from a source- Dangote, Bua or Larfage. Dangote group is a formal company that gives a near accurate estimate of the quantity of cement produced. His major business partners and distributors know how much they distribute. They know how many trucks of Dangote cement that are going to Anambra State for instance. Whatever the final consumers get at the market comes from those trucks. That's where they get the figures.

nope, look at to this way, since VAT is paid at the point of importation of an importer, when Papa chinedu imports a product from Taiwan using apapa port, he pays the VAT in Lagos which is used to determine the GDP of lagos state. When Papa chinedu moves these goods to his warehouse in Onitsha and starts selling it in main Market, he adds the he paid to the cost of the goods and then government can no longer know how many of the goods that papa chinedu has in Anambra state. Those goods that papa chinedu has in his warehouse and his stores in market are suppose to count for the GDP of anambra state. Government can use that VAT paid at Apapa to estimate how much of the GDP that Apapa port contributes but they don't have data of how it contributes to Anambra economy since the goods as bee moved to Anambra and is still in Anambra.

A typical grocery market has Peak Milk, Beloxxi (crackers) biscuits, Milo, Indomie produced in Nigeria. The companies supplying the markets are formal and have data of how many trucks they distributed. Whatever you buy in the market comes from those sources.

Like I said, getting the figure for companies that pay VAT is easy but you cannot know what happens at the open marler2 because you no longer know where those goods are the moment if leaves your company. If those goods are in Onitsha Main market, it's hard for government to know how they contribute to the GDP of anambra if government doesn't have data of the product in-Inflow and outflow in that market. To do that, you will need to develop a method to collect data from that market, with this you can now evaluate how that market contributes to Anambra state GDP in form of commerce. We don't have any database that does that in Nigeria.

Even to subtract imports, the bulk of things brought into the country passed through check at the port and are recorded. That's how Nigeria is able to calculate its balance of payment deficit. No one is going to go to mechanic village to count how many Toyota Camry engines are there because whatever Toyota engine they have passed through check and was recorded at the port.

government only have records of what happens at Ports, they cannot follow what happen in the market hence what happens at points adds to the GDP of the state hosting the port.
If I move a car from Tincan to Kogi, there's no data in Nigeria to know that that is in Kogi and I can even decide to move it Jos government cannot know how to factor that product into plateau state GDP.

To get the prices the products go for in the market is easy. The prices of two or three traders can be used. You can't sell a carton of Nasco cornflakes for 12,000 naira when others in your environment are selling for 10,000 naira. It is why I brought in the ANAP polls scenario of asking only a few percentage of the population.

What may actually affect the calculation of the GDP are small-scale production. Like the farmer who processes her Garri, the student who bakes and sells her chin-chin, peanut and cake and the tailor who produces clothes for people daily. However, the impact of small-scale enterprises engaged in production cannot be compared to those of medium and large scale enterprises. It is also difficult to account for small-scale businesses in advanced countries like Us, UK , especially China etc.

Smuggling and piracy can also affect the figures of imports.

it's what I am saying. Imagine you now have a large market like onitsha main market and Alaba where multiple small scsll business activity happens every second, how to you want to factor that into GDP?
They are not remitting Any VAT to you at that point for you to know

Workch:
wrong, GDP does not only entails the amount of goods produced in the country. If for example I import tomatoes from Japan, it should reflect in the GDP of the country. GDP is the amount of products and service, whether produced or imported that in a country or state. The whole value of goods in an open market should ordinarily reflect on the GDP of that state but their no way for state or NBS government to ascertain the figure since they don't pay VAT on them.

nope, look at to this way, since VAT is paid at the point of importation of an importer, when Papa chinedu imports a product from Taiwan using apapa port, he pays the VAT in Lagos which is used to determine the GDP of lagos state. When Papa chinedu moves these goods to his warehouse in Onitsha and starts selling it in main Market, he adds the he paid to the cost of the goods and then government can no longer know how many of the goods that papa chinedu has in Anambra state. Those goods that papa chinedu has in his warehouse and his stores in market are suppose to count for the GDP of anambra state. Government can use that VAT paid at Apapa to estimate how much of the GDP that Apapa port contributes but they don't have data of how it contributes to Anambra economy since the goods as bee moved to Anambra and is still in Anambra.

Like I said, getting the figure for companies that pay VAT is easy but you cannot know what happens at the open marler2 because you no longer know where those goods are the moment if leaves your company. If those goods are in Onitsha Main market, it's hard for government to know how they contribute to the GDP of anambra if government doesn't have data of the product in-Inflow and outflow in that market. To do that, you will need to develop a method to collect data from that market, with this you can now evaluate how that market contributes to Anambra state GDP in form of commerce. We don't have any database that does that in Nigeria.

government only have records of what happens at Ports, they cannot follow what happen in the market hence what happens at points adds to the GDP of the state hosting the port.
If I move a car from Tincan to Kogi, there's no data in Nigeria to know that that is in Kogi and I can even decide to move it Jos government cannot know how to factor that product into plateau state GDP.

it's what I am saying. Imagine you now have a large market like onitsha main market and Alaba where multiple small scsll business activity happens every second, how to you want to factor that into GDP?
They are not remitting Any VAT to you at that point for you to know

I didn't read the rest after you said imports form part of GDP. Domestic Products

Finished products/ services produced domestically/ locally. That's the indices of GDP abeg.