Thursday, 22 May 2014

FG Commences Rebasing of States GDP with N1bn.

 Supervising Minister for National Planning, Ambassador Bashir Yuguda
The compilation of the Gross Domestic Product (GDP) of the 36 states of the federation and the Federal Capital Territory (FCT) for 2014 has begun and will cost N1 billion.
Out of this amount, the federating units are to contribute N522 million, representing 50 per cent of the total cost while the federal government will contribute N323 million, or 30 per cent.
Donor partners will bring the balance of N208 million, representing 20 per cent.

The supervising Minister for National Planning, Ambassador Bashir Yuguda, disclosed this when he led a delegation of the National planning Commission (NPC) to the 2014 National Conference of Directors of Planning, Research and Statistics, (DPRS), in the public service held in Minna, Niger State.
He explained that the first phase of the six pilot states’ GDP had been concluded and that they were awaiting the validation of the report while the second phase was expected to end by December this year.
“The GDP survey is categorised in three parts - agricultural sector, industrial sector and the service sector and 243 members of staff were deployed for this phase of the project with 2,239 establishments visited during the survey,” he said.
Yuguda noted that the survey of Niger State showed that its economy was diversifying with the industrial and service sectors witnessing a surge, while the agricultural sector remained the dominant player, engaging more than 60 per cent of the population.
He then advised the states to invest in mechanised farming so as to improve food production, irrigation services as well as investment in the tourism sector to harness the potentials of the sector.
“The GDP compilation is intended to serve as a veritable platform upon which states’ economic activities can be pro-actively measured, collaboratively co-ordinated and sustainably managed for improved and evidence-based data management in the country,” he said.
According to Yuguda, it was also the first time in the history of development planning in Nigeria that a hybrid approach would be adopted with common instruments and methodology for the compilation of states” GDP in Nigeria.
“GDP is a key barometer for measuring the level of economic activities in any economy and the concept of the compilation of states’ GDP is novel across the globe,” he stated.
When GDP compilation is properly conducted  in a federating entity like Nigeria, Yuguda pointed out, it would provide the most comprehensive and reliable measure of economic activity at the sub-national level.
He said the result of the pilot survey was expected to assist in identifying gaps in the developed survey instruments and give a guide ahead of the general survey, and also enable states to own the process of compiling State level GDPs.
The minister said the Niger State GDP had been on upward growth from 2009 to 2011 even as he encouraged the state to keep up the pace.
He said the collaboration with the states was one out of the many other federal government and states collaborative initiatives being facilitated by the NPC towards deepening planning and statistical processes at the sub-national level.
Responding to the progress of Niger State from 2009 to 2011, the state Governor, Babangida Aliyu, said the state was pleased with its progress and hoped to ensure that state’s economy continued to grow.
“The GDP is used to measure the performance of government to find out areas of progress and decline. Rebaising the GDP has enabled the country capture so many areas that were neglected over the years,” he said. “When we kept coming first in the decline for poverty in the country, agriculture played a significant role and that is why we need to mechanise agriculture, despite the fact that over 60 percent of the Nigerian population are involved in agriculture, we still import food. We need to take hard decisions that might not be popular but are right things to be done to lay a strong foundation for development.” (Source - ThisDay)

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