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NBS Publishes 11 States Nominal GDP from 2013 to 2017

State and Local Govts	7297 VIEWS
State and Local Govts
7297 VIEWS

Thursday, October 18, 2018 / 02:44 PM / NBS

Background

The compilation of Gross Domestic Product (GDP) estimates for sub-national units of the Federation has been a phased exercise at the National Bureau of Statistics since 2013. In 2017/2018, eleven (11) States – Akwa Ibom, Bayelsa, Cross River, Delta, Kaduna, Kano, Ogun, Osun, Oyo, Rivers and Zamfara – were selected for the initial phase of SGDP computation, providing estimates for states GDP for the five year period covering 2013-2017.
GDP of an economy, including at State level, is a measure in monetary terms of production of all goods and services. Like the compilation at the national level, State accounts statistics is based on the guidelines and recommendations set out in the System of National Accounts 2008 (SNA 2008). The System of National Accounts provides an internationally-recognised framework and a comprehensive set of concepts, definitions and classifications for national accounting. Additionally, other guidelines adopted include the International Standard Industrial Classification of all Economic Activities (ISIC) as well as the Central Product Classification (CPC) system.
States GDP compilation is important and useful for various purposes. First, it provides important information to support evidence-based policymaking. It also helps to identify key drivers of economic growth in each state and assess the performance of the state economy. Further, by revealing the structure of the state economy, the contribution of each state to the national output can be determined.
Methodologically, National/State accounts describe all flows within a period between the economic units constituting the national /state economy and their stocks. As such, the States accounts can follow national accounts as long as one can clearly define and delineate a state, and its resident units in terms of institutional units, production units, consumer units within it. In short, SGDP is the sum of gross value added of all resident producer units (industries) within the economic borders of the state during a given period of time including taxes, less subsidies, on products.
The institutional units / sectors in the States include: Non-financial corporations (Flour Mills, Nestle, etc), Financial corporations (Banks, Insurance etc), State governments, Non-profit institutions serving households(NPISH) in the state, and Households. In compilation of SGDP, residence is not based on birth or legal criteria. Instead, an institutional unit is classified as resident if it has a centre of economic interest in the economic territory of a state. Certain activities cut across state boundaries, and thus their economic contribution cannot be assigned to any one state eg Telecommunication, Rail way line, Transportation, Banking & Insurance. Other activities like Defence, para military, border security force, high sea drilling etc are kept outside the purview of the state GDP.
Key data sources included secondary/administrative data, surveys, financial statements, audited State government accounts, VAT returns.
The completion of this initial phase of the SGDP compilation exercise has revealed new insights regarding the structure of sub-national economies. In addition, it indicates an improvement in statistical capacity for producing both national and state accounts. The results are expected to inform policymakers at all levels regarding absolute and relative magnitudes of economic activities in the selected States, while NBS continues its efforts to complete the next phase of compilation for the remaining 25 States and the Federal Capital Territory, Abuja.