State Gross Domestic Product (SGDP) Computation
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STATE GROSS DOMESTIC PRODUCT (SGDP) COMPUTATION
A key concern of Government in any economy is the determination of the country’s total output of goods and services and related indicators. The methods used in their determination are captured in a system known as National Accounting. National Accounts provide both the actual measures of such macroeconomic indicators as output and income and a conceptual framework for relating the various indicators to one another. The accounts, in particular, relate output, income and spending at individual, corporate and government levels.
Gross Domestic Product (GDP) is the basic measure of value of all goods and services produced within the borders of a country computed quarterly or yearly. Alternatively, it can be measured as a country’s expenditure on all final goods and services consumed within its borders during a period, usually quarterly or annually as well as the incomes generated by production – e.g. the compensation employees receive and the operating surplus of companies.
Prior to 2013 fiscal year, the Nigerian GDP has been compiled at the national level on aggregative basis by the National Bureau of Statistics (NBS). In line with the Government resolve to deepen economic management at the sub-national level, the National Planning Commission (NPC) was mandated to commence the computation of GDP at the State level. The compilation of State GDP is therefore novel and is to ensure that GDP data is generated on State by State basis.
B. Objective of SGDP Computation Project
The relevance of statistics in general and GDP computation in particular to national development cannot be over-emphasized as the availability of timely and reliable statistics on sub-national levels is very essential for planning. State GDP (SGDP) is needed for effective M&E and for making complex evidence-based policy decisions in the state economies. It also helps in benchmarking States’ economies; acts as a compass for investors in making investment decisions; shows sectoral drivers of the economic growth of a State and sectors that require intervention; engenders healthy competition among different States in the country; and promotes good governance.
Uniform standards and methodology was adopted for the State Gross Domestic Product (SGDP) computation exercise and is aimed at:
- Revealing the structure and character of the economy of a particular State or region;
- Determining the key drivers of economic activities in the States; and
- Capturing States’ contributions to national output, among others.
The process adopted for the computation of SGDP was inclusive and participatory and consistent with international best practice and the experiences of other countries that have done State/Regional GDP computation.
The focal point for the programme at the National Planning Commission is the Macroeconomic Analysis Department. The exercise is to be carried out in two phases, namely the pilot in seven States from the six geo-political zones and the FCT, while the second phase (general survey) will be carried out in the 36 States and FCT.
The major activities that have so far been undertaken for the 1st phase are:
(i) A stakeholder’s workshop was held in September 2010 for the States;
(ii) Formal flag-off of the SGDP/sensitization in six States, one each from the six geo-political zones (Lagos, Anambra, Rivers, Niger, Kano and Gombe) in 2012;
(iii) Needs Assessment to ascertain the capacity of States Planning and Statistical Agencies in 12 pilot States of Kogi, Niger, Ekiti, Lagos, Anambra, Enugu, Gombe, Taraba, Kano, Sokoto, Cross River and Rivers conducted while the second phase in another 12 States is currently ongoing.
(iv) Stakeholder Validation session on the report on the 12 pilot States;
(v) Pilot survey in the seven States;
(vi) Analysis of the survey results;
(vii) Presentation of the result of the pilot States by SG (NBS) to the Directors of Statistics of pilot States in July 2013;
(viii) Presentation of results of pilot States to the National Steering Committee in August 2013; and
(ix) Formal presentation of the result to the Hon. Minister of National Planning in August 2013;
(x) Presentation of the results of the survey to the Executive Governors of Cross River and Niger States and their Executive Councils for validation; and
(xi) The presentation of the results in the remaining pilot States of Anambra, Kano, Gombe, Lagos and Rivers expected to be undertaken in due course.
The second phase has commenced with the headquarter level training of field officers, preparatory for the nation-wide survey.