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FG to retake computation of GDP in seven pilot states

By on April 28, 2014

The Federal Government will retake the computation of States’ Gross Domestic Product (SGDP) conducted in seven pilot states to assess their contributions to National GDP, Secretary to the National Planning Commission (NPC), Mr. Ntufam Fidelis Ugbo, has said.

The need to retake the exercise in the affected states is as a result of the recent rebasing of Nigeria’s GDP which made it the 26th largest economy in the world and Africa’s biggest economy.

The SGDP computation exercise conducted in seven pilot states to assess their contribution to National GDP has been concluded and is currently being validated by the respective state governors and their executive council.

The pilot phase of the scheme included Kano, Cross River, Lagos, Anambra, Gombe and Niger States.

But only results of Anambra and Cross River had so far been presented and validated while findings are still being kept away from public knowledge.

Secretary to the National Planning Commission (NPC), Mr. Ugbo, said when eventually made public, the comprehensive report is bound to stun a lot of people who hitherto believed Lagos is the biggest economy in the country.

Speaking in Bauchi at the 2014 Meetings of Joint Planning Board (JPB) and National Council on Development (NCDP) themed:”National Strategic Planning for Inclusive Growth and Sustainable Development: Fostering Job Creation and Equity” Ugbo said prior to the rebasing of the economy, only about 83,000 economic activities were taken into consideration during the state GDP computation exercise, adding that with the current rebasing, the commission would have to go back to the states and include about 800,000 activities.

However, it was not clear if additional funding would be required from the states- to retake the exercise.

According to Director, Macroeconomic Analysis, NPC, Mr. Tunde Lawal, already, about 15 states were said to have failed to make the initial N14.1 million contribution for the programme.

The affected states include Bayelsa, Kano, Taraba, Nassarawa and Kogi.

Others are Kwara, Benue, Imo, Sokoto, Plateau, Edo, Ogun, Yobe and Osun.

THISDAY gathered that some states governors were unwilling to pay partly because they felt the exercise ought to be fully funded by the federal government since the latter would take glory for the intended outcomes.

However, Ugbo argued that it was in the best interest of the states to collaborate with the federal government for expertise and credibility as the GDP had become the best indicator for foreign investors who need additional information on the economic potentials of the various regions following the rebasing programme.

He added that the exercise would also help the federal government carry out Needs Assessment tests with a view to helping to address such issues bordering on dearth of infrastructure.

He noted that states in need of foreign direct investments must however, create the enabling laws to woo investors who see such legal framework as critical for business.

The execution of SGDP computation exercise was estimated to gulp over N1 billion with the federal government required to bear

30 per cent or N313, 301, 550 of the funding while the states were expected to altogether contribute 50 per cent or N522, 169, 244. Each state is required to pay N14.11 million.

States planning officials however want the results of the computation in the pilot states published so they could use it to try to convince their respective state governors to make the payments.

Altogether, 21 states of the federation including the Federal Capital Territory (FCT) have made their contributions. States which do not make their contributions are not likely to partake in the computation programme which according to Lawal would sharpen states competitiveness with peers and make political office holders more accountable to the electorates as well as make them attractive to foreign investors.

Meanwhile, another round of SGDP computation exercise covering 12 states in the six geopolitical zones has begun.

It further emerged that only 12 states had so far established States’ Planning Commission.

These include Abia, Niger, Adamawa, Ekiti, Enugu, Kwara, Nassarawa, Plateau, Taraba, Zamfara, Benue and Bauchi.

 

[This Day]