NOW THAT NIGERIA HAS THE LARGEST ECONOMY IN AFRICA 2

Interestingly, the new GDP figures has generated so many views from showing genuine concern to the mundane thinking and to very funny analogies. As  if she had prepared for knocks that will follow the pronouncements of the new GDP figures,the minister of finance,Mrs. Ngozi Okonjo-Iweala made it clear that there is no much comfort in the released figures.She said the  new GDP of $510bn did not mean that we are richer than before nor will our poverty level disappear overnight just like our other social challenges.She confirmed that unemployment is still very high but the new position has given us revelations about key activities and the direction of our economy.

Some few days ago,the world bank through the MD. Dr.Tim Young Kim announced that Nigeria is among the top 5 countries including China,India,Bangladesh and Congo DR where you will find two third of the extreme poor population of the world.There is no comfort in thinking that we have China and India in this classification.These countries have taken so much effort at mass employment and policy direction in the last 3 years to reduce the size of poverty in their domain.

Some economy experts have started expressing their opinions on the rebased GDP of Nigeria.There are some that you will think they are angered by the developments from the speech they made.One was quoted as saying that the size of the economy is not important for Foreign Direct Investment.He said investors are more likely to look at safety of investment in term of securities,political situations and government policies.I believe as expert,he should know that higher risk, the  higher the returns.Returns on investment in Nigeria is one of the best in the world.

My honest position is that  we have taken a giant step in a long while to improve on our data gathering for provision of national statistics.If we continue to get it right,we should be able to use national statistics to effectively address our challenges as a nation.This exercise has given us opportunities and challenges as well. Government must act fast.It is important to plan yearly based on what we have now. We can start by tailoring our annual budget towards addressing key deductions from the GDP.It is interesting to note that Federal Inland Revenue Service is planning to increase tax to GDP to 20% from 12%..We should consider the effect on businesses given unemployment rate put mildly at 54%,It is possible to  reduce tax revenue drive to encourage industrialization.Manufacturing to GDP just moved from 2% to 7%..Service sector which comprises  Banks,Insurance,Health and others is now 52% of GDP from near zero.The industrial sector now contribute   25.64%, Agriculture to GDP declined  to 22%.Telecom alone contributes 9% of GDP. Oil and Gas is 7%.