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Re: USA Africa Dialogue Series - On Nigeria's Gross Domestic Poverty (GDP) Index

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I must confess that am not an economist,but i most commentators on this issue have not been quite analytical enough in order to educate us better.The reason for this i think has to do with the Goodluck Jonathan factor.It seems some think that the figures are about Jonathan and 2015 and therefore have to work hard to discredit the rebasing exercise.This is wrong.  What should concern us is the seeming paradox that despite been the 26th largest economy in the world we still have 60% of our population living below the poverty line.The implication is simply that the benefits of growth have not been shared equitably.So the main issue now is how to address this criminal inequality.Thank you.


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Okey Iheduru <okeyiheduru@gmail.com> wrote:
Nigerians continue to be treated to economic illiteracy which feeds the pervasive cynicism and rumor-mongering, now particularly virulent among the "public intellectual" claimants. No reasonable person, let alone Nigerian government officials, has said Nigeria now has "the best economy" or is "better than..." any other country as Oladosu A. Afis Ph.D's caricature write-up claims ("Yet your economy has been declared the best of all"; "Yet our economy is now better than that of Malaysia!!"). What the National Bureau of Statistics (NBS) has been doing since 2010 in re-basing Nigeria's GDP is not a "proclamation"; nor does it justify the bombastic claim of Nigerians being in "a season of unreason!"Hear him further: "I thought the real issue of concern to Nigerians is who would intervene to put smiles on their haggard and grief-stricken faces." In order to help us better appreciate what the NBS did, as well to better understand the economics of GDP re-basing, I've attached the agency's own document that lays it all out. Playing opposition politics in the guise of "public intellectual" or pretend-columnist actually debases the worth of intellectuals in the eyes of the public, more so in the calculations of the object(s) of these low-bar ignorant statements or attacks. 

If these "academics" who are making essentially libelous and false allegations that the Nigerian government pressured the National Bureau of Statistics (NBS) to "cook" the figures had bothered to ask or look, they would have educated themselves on the recent transformations in the bureau. Since 2005, the NBS has been working to create a highly-integrated Nigerian Data Nervous System (NDNS) which would bring all data producers and user agencies together through a Virtual Private Network (VPN) and connect them to the Internet. The total cost estimate for implementation of the NSDS stands at US$471m for 2010 to 2014. The Nigerian government provided US$281m while total donor support now stands at US$40m. Despite these various funding options, the project still faces a financing gap of about US$140m. 

Making unsubstantiated allegations against NBS and the Government (thereby actually breaking quite a number of laws) is not a good way to encourage them to improve on their still low but rising capacity. A recent survey (see below) shows that you don't have to be "an agent of the Nigerian government" to appreciate even minimal successes achieved by fellow Nigerians under very difficult circumstances.


Do you feel the Nigeria Statistical System has improved recently?
  • a.   Improved significantly  92.7%
  • b.   Improved moderately  4.00%
  • c.   Remains the same  1.63%
  • d.   Worse than previously  1.56%

I understand if you don't believe that Nigerians have brains or are even aware of their surroundings. How about this assessment of the NBS by Professor Ben Kiregyera, former director of the United Nations Economic Commission for Africa (UNECA) and chairman of the Ugandan Bureau of Statistics. 'Unlike in the past, the data provided by the NBS can now serve as reference for socio-economic development strategies. The department has "moved from darkness to light. Other African countries should come to Nigeria and learn what transformation is all about."'

 If you accept the World Bank's poverty figures and gladly use them to flog Nigeria into stupor, it makes sense to also trust Prof. Kiregyera (whose assessment was quoted in a 2010 report by the same World Bank which I've pasted below), unless the Ugandan professor is also an agent of Dr. Jonathan whose presidency (we're told by another oft-quoted "public intellectual") "has nothing to show for it." 

And, here's some news for those of us who believe all Nigerians would prefer relocating to South Africa, hence the latter is "better than Nigeria." In 2010, 19 OECD countries that keep such data showed that at least 588,388 individuals in these countries were recorded as having recently emigrated from South Africa. And, there was an outrage about an alleged serious under-counting of the actual emigration figures! Black unemployment rate in Mandela's heaven is as high as 42% in most black communities.

For the umpteenth time, the re-basing of the GDP did not say or mean poverty has disappeared from Nigeria. The same NBS which allegedly "cooked" up the numbers also says 61+% of Nigerians are poor (i.e., live on less than $2 a day) -- and we're eager to use this "smoking gun" against the Government! For comparative data, it's worth taking a look at South Africa's poverty stats below.

South Africa Key Statistics

Living condition survey- 2008-2009
Poverty headcount56.8% (about 51% in 1996!)
Poverty gap27.9%
Average annual HCE67 935
Gini coefficient based on HCE0.7
Source: StatisticsSa, 2013.

Finally, should anyone on the payroll of a university make a statement like this?: "Brethren, I was told that in successful economies the rate of inflation is never allowed to go above 2.0 per cent because once it does the economy is in crisis."


Peace as always!
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Nigeria Transforms Statistics Bureau to Provide Reliable Economic Data

http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/0,,contentMDK:22722866~menuPK:258659~pagePK:2865106~piPK:2865128~theSitePK:258644,00.html (accessed 12 April 2014).

ABUJA – October 1, 2010 -- Nigeria's National Bureau of Statistics, an institution once viewed as undependable and decaying, is now generating surveys that provide valuable insight into the country's economy, thanks to funding from the World Bank's International Development Association (IDA).

For years, the statistics department was largely unknown and undervalued and many statistics users viewed the data as unreliable and of only limited use. With help from IDA and Britain's Department for International Development (DfID), Nigeria began to transform the bureau by merging the Federal Office of Statistics and the National Data Bank to create the National Bureau of Statistics (NBS).

Since its revamp in 2005, the NBS has conducted over 21 functional surveys and studies on Nigeria's development, focusing on areas such as employment, welfare indicators, trade, agriculture, industry and business, energy, environment, inflation and others.

The revitalization was part of the Economic Management Capacity Building Project (EMCAP) and the Economic Reform and Governance Project (ERGP) and included help from other partners such as the Africa Development Bank (AfDB), the Economic Community of West African States (ECOWAS), the United Nations Development Program (UNDP), and the European Union (EU).

Partners also helped with providing and upgrading infrastructure and equipment; human resource management and development; and improved data production methodology, data management, dissemination and access. Attention was also placed on capacity building in statistics, Information and Communication Technology (ICT) and management in order to improve the performance of all categories of staff.

NBS provides results

The precursor to the National Bureau of Statistics, the Federal Office of Statistics (FOS), was created as a government agency in 1929 but fell into decay in the 1990s due to poor government attention and funding, bad management, and out-of-date data production and management technologies. Workers suffered from low morale and productivity and a position at the FOS was often seen as punishment by civil servants.

Unlike in the past, the data provided by the NBS can now serve as reference for socio-economic development strategies. The department has "moved from darkness to light," said Professor Ben Kiregyera, former director of the United Nations Economic Commission for Africa (UNECA) and chairman of the Ugandan Bureau of Statistics. "Other African countries should come to Nigeria and learn what transformation is all about."

In addition to conducting the 21 studies since 2005, the bureau cleared all backlog of annual abstracts of statistics, Nigerian foreign trade summaries, agriculture survey reports and national accounts of Nigeria from 2000 to 2008. Since its transformation, NBS has also published and disseminated over 54 new series on different sectors of the economy. These studies, surveys, and publications are now highly valued by Nigerians and international organizations.

Goal is to be hub for statistics in Africa

The positive transformation motivated the NBS to expand its scope through the National Strategy for the Development of Statistics (NSDS) to cover both federal and state producers of statistics. The objective is to make the national statistical system in Nigeria one of the foremost and modern knowledge-based National Statistical Offices in Africa and the world at large. The 36 states of Nigeria and the Federal Capital Territory are being brought on board. Each state is expected to develop a State strategy for the Development of Statistics (SSDS) that would feed into the national strategy.

The NBS, encouraged by its success in recent years, is pushing the envelope further by creating the highly-integrated Nigerian Data Nervous System (NDNS) which would bring all data producers and user agencies together through a Virtual Private Network (VPN) and connect them to the Internet.

But, these additional reforms require more investment. The total cost estimate for implementation of the NSDS stands at US$471 million for 2010 to 2014. The Nigerian government, recognizing the importance of statistics, will provide US$281 million and total donor support now stands at US$40 million. Despite these various funding options, the project still faces a financing gap of about US$140 million.

"Though we have come a long way, we still need a lot of assistance from our partners to implement the master plan and particularly the Data Nervous System which will completely transform the generation, dissemination and use of statistical products in Nigeria and Africa as a whole," said Statistician General and Chief Executive Officer of the National Bureau for Statistics Dr. Vincent Akinyosoye. "Our goal is to be a hub for statistics in Africa."

For further information on the National Bureau for Statistics, please refer to NBS web portal:
http://www.nigerianstat.gov.ng/   




On Sat, Apr 12, 2014 at 3:04 AM, H O <afism3@yahoo.com> wrote:
ON OUR NEW 'GROSS DOMESTIC POVERTY' (GDP) INDEX
Afis A. Oladosu
 
Indeed, He will not change the condition of a people until they change it by themselves." (Qur'an 13:11)

It appeared officers of the National Bureau of Statistics (NBS) had the above divine ministration in mind when they set about the task of 'rebasing' the Gross Domestic Product (GDP) index of the Nigeria economy. Thus they issued a proclamation that Nigeria now has the best economy in Africa. The proclamation did this to me: it reminded me that to live in this city is to be 'assaulted', and constantly too, by news and events which makes sense only to those whose sense of "sense" usually make men and women of wisdom insensate.
It was last Sunday that the news broke. But it was not last Sunday that the mill had been put to work to 'work' this out. In other words, arguments which informed the proclamation that the Nigerian economy now ranks 26th in the world, include the fact that an exercise of similar nature was last carried out in 1990. There was, therefore, the need, and an urgent one for that matter, to re-measure the 'pressure' in the 'factory' of the Nigerian economy. Lack of accurate GDP index, the NBS pundits opined, had led to the assumption that the Nigerian economy is second-rate in comparison to others in Africa including that of South Africa, Botswana and Egypt (particularly before the overthrow of the dictator, Husni Mubarak), among others. Again "rebasing the GDP" equally became necessary because the process usually "enables analysts, investors, and policy makers make informed decisions about the most appropriate infrastructure, initiatives, and investments to implement for the country".
Thus the data was released on Sunday by the NBS. In doing this it recalculated the value of the GDP based on production patterns in 2010. It increased the number of industries to be measured to 46 from 33 and gave greater weighting to sectors such as telecommunications and financial services. Consequently "the revised figure makes Nigeria the 26th-biggest economy in the world!"
Thus dear brethren, by 'rebasing' the GDP, our country suddenly became the "United States of Nigeria". Our nation's economy instantly overtook that of South Africa. All these have occurred, you must remember dear Sister, on paper! All these have occurred, dear brother, courtesy of the 'inimitable' power conferred on the statistician to make figures speak! All these have occurred sequel to the magic wrought by the unknowable data in the hands of economists in the corridors of power.
Hurray! The Nigerian economy is now deemed to be 'better' than that of some countries in Latin America whose economy remains a source of envy for other third world economies. Our economy is now deemed to be better than that of Malaysia which has long been a producer of an home-made car since over a decade now.
But we must pause and ponder another data which says sixty-one (61) percent of Nigerians live on less than a dollar a day. So what are we saying? To be circumspective of data and statistics, particularly those ones on the Nigerian economy is to be wise in a season in which folly pays.
But whether the data is right or wrong does not actually matter. I am of the view that it is of no use to the ordinary Nigerians should the NBS go to town tomorrow with the declaration that the Nigerian economy has overtaken that of the United States. I thought the real issue of concern to Nigerians is who would intervene to put smiles on their haggard and grief-stricken faces.

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