Thanks for holding the fort in my absence. Muea boys always stand for each other.
I have been preoccupied with mortality lately and have been busy arranging my personal estate to avoid being caught with my pants down by HMRC. The tax man must not have the last laugh.
Martin is eternally vaunting the catch-up achievements of Africa's most populous state (170 million people). What is $510 Billion to170 million people? Nigeria's petroleum wealth should have had a greater multiplier effect on its GDP if it been well managed. Singapore with 4 million people and no resources has a GDP of $318.9 billion.
Africans are so used to underachievement that paltry steps look like giant strides.
Mukefor Besongabang
Lawyer/Banker/Wealth Manager/Statesman/Gubernatorial Aspirant.
To: camnetwork@yahoogroups.com; cameroon_politics@yahoogroups.com
From: anomah007@yahoo.com
Date: Mon, 7 Apr 2014 01:18:46 -0700
Subject: [cameroon_politics] Re: RE: [camnetwork] Where is Tambe?: Nigeria GDP Rebasing, biggest economy in Africa
Na so palava dey take start for Camnet!!! Please give peace a chance. |
From: Martin Tumasang <tumasangm@hotmail.com>;
To: cameroon_politics@yahoogroups.com <cameroon_politics@yahoogroups.com>; camnetwork@yahoogroups.com <camnetwork@yahoogroups.com>;
Subject: RE: [camnetwork] Where is Tambe?: Nigeria GDP Rebasing, biggest economy in Africa
Sent: Mon, Apr 7, 2014 5:31:30 AM
| Dear All, Where is economist/banker Denis Tambe to look askance at these Nigeria GDP figures and meteoric rise in power?. His silence or self appointed dumbness is deafening. Regards Tumasang To: cameroon_politics@yahoogroups.com; camnetwork@yahoogroups.com From: tumasangm@hotmail.com Date: Mon, 7 Apr 2014 05:10:57 +0000 Subject: [camnetwork] Nigeria in Perspective: Now 26thLargest Economy in the World, GDP Hits $510 Billion Nigeria Now 26th Largest Economy in the World, GDP Hits $510 Billion President Goodluck Jonathan • IMF, World Bank, others hail exercise SECTORAL CONTRIBUTION TO GDP
Steve Omanufeme and
After several delays, Nigeria has finally rebased its nominal gross domestic product (GDP), which saw estimates for 2013 hitting $509.9 billion from $285. 56 billion. Following the rebasing exercise, which received the accolades of the International Monetary Fund (IMF), World Bank and African Development Bank (AfDB), among others, Nigeria emerged Africa’s biggest economy and the 26th largest economy in the world. South Africa with a GDP of $384.3 billion is the continent’s second largest economy. The new nominal GDP also places Nigeria ahead of countries like Austria with $394.7 billion, Venezuela with $381.26 billion, Columbia - $369.6 billion, Thailand - $365.96 billion, Denmark - $314.88 billion, Malaysia $274.7 billion and Singapore $269.87 billion. Nigeria’s rebased figure, which was released in Abuja yesterday by the National Bureau of Statistics (NBS), put the value of the nominal GDP in 2012 at N71.1 trillion (about $453.9 billion) as well as a projected figure of about N80.2 trillion (about $509.9 billion) in 2013. The rebasing further showed a marked change in the structure of the country's GDP. The Statistician General of the Federation, Mr. Yemi Kale, said the 2010 rebased nominal GDP represented an increase of 59.9 per cent using the old base year and 69.10 per cent in 2011, as well as an increase of 75.58 per cent in 2012 and a projected 89.22 growth per cent in 2013. The revised figure indicated that the services sector, which comprises financial institutions, information and communications, real estate, professional, scientific and technical services, and trade, contribute about 52 per cent of total GDP, with industry coming a distant second at 25.7 per cent. They are followed by agriculture (22 per cent), telecommunications (8.69 per cent), manufacturing (6.83 per cent), and entertainment, which had not been previously captured (1.42 per cent). He said the previously excluded sectors including telecommunications and information services, publishing, motion picture, sound recording, and music production and broadcasting were accommodated in the latest results. Other sectors, which had also been captured in the rebasing exercise were arts, entertainment and recreation, financial institutions and insurance, real estate, professional, scientific and technical services, administrative and support services, public administration, education, human health and social services, and other services. This brought the list of activities captured to 46 from 33. He noted that the informal sector of the economy, which had been fairly accommodated, could contribute as much as 55 per cent of GDP. According to Kale, real GDP growth in the aftermath of the rebasing exercise was estimated at 5.09 per cent in 2011; 6.66 per cent in 2012 and a projected 7.41 per cent in 2013. He said: “Over the period, the economy is expected to grow by an average of 6.39 per cent. The services sector is expected to grow the fastest during this period, increasing by an average of 7.72 per cent. This is followed by industry that is expected to by 7.19 per cent. Agricultural sector is expected to grow grow by an average of 2.61 per cent during the period.” Also speaking at the unveiling of the rebasing exercise, the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, welcomed the outcome of the exercise, adding that government would use the information responsibly. She said the result would help to properly understand the structure of the Nigerian economy, adding that this would significantly influence policy decisions going forward. But she admitted there was still a lot of work to be done, especially given that tax revenue to GDP remained low at 20 per cent, while that for non-oil taxes showed a significant drop to 4 per cent, indicating huge untapped potential in non-oil taxes. She however described the rebasing initiative as a courageous effort at improving the quality and reliability of data, stressing that it provided the parameters to better measure economic activities. Stressing that data quality and reliability are critical for decision making, Okonjo-Iweala said government had commenced investment in data generation and management. She said the federal government was already restrategising to take advantage of the opportunities provided by the improved knowledge of the changing structure of the economy. “The policy direction will reflect even more of the fact, like similar emerging market economies, that small and medium scale firms will increasingly play a more prominent role in the economy. “As part of this focus, government will expand and deepen its current efforts to boost manufacturing, SMEs and entrepreneurship through relevant policies, skills training, grants and other incentives. This is likely to include scaling up of programmes like YOUWIN, the Graduate Internship Scheme, and similar programmes. “Another sector that will receive more attention is the Nigerian movie industry whose growth was also highlighted by the rebasing exercise. The industry accounts for N853.9 billion or 1.42 per cent of GDP,” she said. The minister also pointed out that with the rebased GDP data, the country’s debt-to-GDP ratio had improved, which would boost the borrowing room for the country to invest in infrastructure. But Okonjo-Iweala was quick to add that for the fact that the debt-to-GDP ratio had improved, it would not make government rush headlong to borrow, maintaining that borrowing was not on the agenda for now. She explained that the government, instead, would resort to public private partnerships to finance infrastructure instead of borrowing, adding that the only alternative would be to obtain such funds under reasonable concessionary terms. She said: “The one predominant school of thought doesn’t want the country to borrow more; they want us to be very prudent in our approach. Also, there’s a half school of thought that believes we should borrow more and some of them feel very strongly that the country is under borrowed and should do much more to find resources to underpin its development. However, having suffered through the debt relief exercise, which turned my hair grey and that of my colleagues on the Economic Management Team, we would not want the country to get into a situation where either domestically or externally, we have to struggle to pay our debts. “So we must err on the side of being prudent and tread carefully. What we can do is to vigorously look for investors willing to enter into public private partnerships with government. I will suggest we go with that direct investment route and create special purpose vehicles that can take on some debts for particular projects, projects that can pay for themselves.” In his contribution, the supervising Minister of the National Planning Commission (NPC), Mr. Bashir Yuguda, said the outcome of the rebasing would boost the confidence of international investors who want to do business in the country. World Bank Country Director for Nigeria, Marie Francoise Marie-Nelly, said efforts should be intensified to bring the informal sector into the formal economy because it constitutes a major factor to the development of any economy. She said the bank would continue to work with government in order to strengthen the data management system. A representative from the African Development Bank (AfDB) said the development had further showed that Nigeria would be the first country in Africa to make it to the top 20 economies in the world. However, representatives of multilateral institutions, which supervised the rebasing exercise, while validating the outcome, also said data was not an end in itself, noting that it was just one step along a long road. They therefore urged the government to put to good use the information to produce good economic policies. “Data is not static, it should be continuously worked upon,” said the representative from the World Bank, urging that GDP revisions should be done more regularly. Kale also revealed that the final estimates of the rebasing exercise are expected in June. He said NBS is expected to release the final GDP estimates for 2013 by June 2014 and that the 2015 base year data will be available by 2016, when another rebasing exercise will be undertaken. |
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