Pay More Attention To Construction And Real Estate, Ex Minister Tells FG

vlcsnap-2014-04-30-10h42m22s164The President of the Nigerian Institute of Quantity Surveyor and former Minister of State for Power and Steel, Mr Murtala Aliyu, on Wednesday urged the Federal Government to pay more attention to  construction and real estate sectors as it could contribute more to the Gross Domestic Product (GDP).

“There is no economy that goes in a sensible manner without engaging the construction sector” adding that the real estate and construction sectors of the economy account for11 per cent of the Nigeria’s GDP.

He noted, that this is “in spite of not getting the appropriate attention from government; with the correct attention we should be doing more.

“South Africa has about nine per cent contribution (to their GDP) from construction alone” revealing that “it was around seven per cent sometime in the 80s” he said.

Mr Aliyu while speaking as a guest on Channels Television’s award-winning breakfast show, Sunrise Daily, also noted that rebasing of the economy should only be celebrated if it provides “the proper environment for investors to be encouraged” insisting that there is “nothing to fear, nothing to criticize and nothing to celebrate as long as you don’t take advantage of the rebasing”.

He further called on the federal government to embark on the utilisation of the local capacities berating the high number of foreign players in the construction sector.

He described the mortgage system in the country as “structurally weak” and called on the authorities to “sensibly put things in place which will encourage growth in the economy for people to afford and sustain the mortgage”.

Despite the improvement recorded by some states on the issue of the Land Use Act, Mr Aliyu said the FCT Land Use Act which was written in 1881 is under review now, has made the acquisition of land “very cumbersome” insisting that it has also discouraged citizens from acquiring lands from those who hold  lands in trust for people.

He however noted, if that can be corrected, more estates will be built, the housing deficit in the country will be reduced and gradually eradicated.

Mr Aliyu also blamed the poor quality of materials used in construction and real estate sectors as “graft and corrupt” insisting that “unless these issues are addressed, the quality of the products will continue to be low.

“People compromise so much by not putting all that is necessary in terms of the money paid for the job because somebody is sharing part of it”.

He urged the federal and state governments to strengthen quality control mechanisms to ensure the use of quality materials in the execution of projects by professionals and contractors.

Ministers, Policy Leaders React To Nigeria’s GDP Growth

Min of FinanceSome well-meaning Nigerians have been reacting to the national Gross Domestic Product as released by the National Bureau for Statistics, describing the exercise as very key in policy making by both the private and public sectors of the economy.

In an interview with Channels Television after the special press conference where the new figure of 510billion dollars was released by the NBS, Minister of Information, Mr Labarn Maku, said that the GDP could have done better if not for incessant insurgency in the land.

Also speaking, the Acting Governor of the Central Bank of Nigeria, Mrs Sarah Alade and the Director-General of the Securities and Exchange Commission, Mr Arunma Oteh, said that the new figure would definitely enable policy makers and analysts obtain more accurate set of statistics to work with.

For over two hours they sat listening to the presentation of the rebased GDP estimate for Nigeria 2010-2013, and the key point was that with the new figure of $510billion GDP, Nigeria now ranks as the 26th largest economy in the world, just behind Argentina, Belgium, and Poland, but ahead of Austria, South Africa, Venezuela and Colombia.

On a per capita basis, Nigeria stands at about $2,688 per capita and occupies the 121st position in the world; a figure with which Nigerians are being cautioned not to get carried away especially as the growth is coming amidst insecurity in the land.

How investors would apply the new figures in their judgement of where best to invest funds was of paramount importance and this could only be achieved if the investors had confidence in the figures.

Building this confidence was made possible by the injection of independent bodies in the data collection to ensure that the numbers were consistent.

The Minister of Finance and Supervising Minister of the Economy, Dr Ngozi Okonjo-Iweala, revealed, “The work that was done by the Chief Statistician and his team was subjected to review by a panel of six Nigerian experts; Professor Olu Ajakaye, Professor Akpan Expo, Dr. Ayo Teriba, Dr Doyin Salami, Profesor Garba and Dr, Yemi Fagbeunsi.

“The Statistician(s) had all along an IMF consultant working with them because that is the key job of the multilaterals, particularly the IMF (International Monetary Fund). We later subjected the numbers again to checks through a team of multilateral institutions. The African Development Bank, the World Bank and the IMF, all took a look, so it’s been quite a rigorous process.”

One of the highlights of the new figure is that Nollywood (1.2%) and telecommunications (8.7%) have emerged as major areas alongside the agriculture sector (22%), with the share of oil and gas (15.9%) dropping in the new GDP; a lesson that Nigeria should double efforts to grow the other sectors.

The Bureau for Statistics expressed optimism that the exercise would be a regular issue, at least every five years; a challenge to both the private and public people to become more creative in policy making.

Rebasing The GDP: Nigeria Emerges As The Largest Economy In Africa

CBNNigeria has emerged the largest economy in Africa.

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

 

Nigeria’s GDP For 2013 Is $510 Billion

CBNNigeria has emerged the largest economy in Africa

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

 

Nigeria Now 26th Largest Economy In The World, And Its Per Capita GDP Is 121st In The World

CBNNigeria has emerged the largest economy in Africa

The Statistician-General of Nigeria, Dr. Yemi Kale, made this public at an event in Abuja on Sunday, April 6.

He announced that the current GDP of the country stands at $510 billion, and according to him, this makes Nigeria the largest economy in Africa.

Explaining the concept of GDP and how it is calculated, in a presentation on the process of rebasing the nation’s GDP, Dr. Kale noted that rebasing does not imply new figures only, but shows clearly the performance of the economy in data form.

He noted that rebasing and re-benchmarking of the GDP was just one of the things the country needs to get its statistics right.

He, however, warned that it was important that Nigerians “do not mix data with ideology”. He added, “We need to be more objective in the way we apply our data.”

The last time Nigeria rebased its GDP was in 1990.

70% Of Nigeria’s Farm Produce Rots In Transit

The Senior Special Assistant to the President on Aviation Matters, Ann Ene-Etta, has outlined the means by which the government is trying to ensure the successful exportation of farm produce through the aviation sector and the Nigerian Fresh Produce Transformation Programme, which would bring an end to the huge wastage experienced in the food sector.

Ene-Etta made this known during an interview on Sunrise Daily at the on-going 19th Nigerian Economic Summit which focuses on the agricultural sector.

She disclosed that 70% of farms produce in the country rot before it reaches the consumers, a trend she assured government is working to tackle via the Nigerian Fresh Produce Transformation Programme because “the essence of it, is for us to ensure that we put the processing facilities in place” as well as the storage, refrigeration facilities “which will assist the farmer to preserve produce that is rotting away”.

The Nigerian Fresh Produce Transformation Programme, an initiative of President Jonathan which was launched in May 2013, is managed by an inter-ministerial committee made up of the ministry of agriculture, water resources, national planning and finance,and it is headed by the Minister of Aviation, Stella Oduah.

The programme aims to provide food security, facilitate the exportation of farm produce and create jobs.

The National Orientation Agency was tasked to ensure that farmers are aware of the programme as the ‘tempting’ offer would encourage the farmers to ensure that their produce meet the required specifications and standards for exportation.

The programme also seeks to cause a great reduction in the percentage of post-harvest produce which does not have self-sustainance.

The programme will help local farmers increase their production; she said, and it will also help improve the rural areas, create more jobs and increase the nation’s Gross Domestic Product (GDP).

The aviation sector comes to play as there are 14 perishable cargo terminals all over the country, which farm produce collectors can use in transporting the goods to other states or countries.

This process, she said, would breed more ambition in the market and attract more investors into the sector.

Current GDP Structure Is Outdated – Statistician

The Statistician General of the Federation and Director General of the National Bureau of Statistics, Dr. Yemi Kale, has said that the current structure of the nation’s Gross Domestic Product (GDP) is outdated.

He said this on Business Morning while discussing the National Bureau of Statistics’s plan to rebase the GDP.

Rebasing the country’s GDP “is about getting our figures right” because it should be done every 5 years, as is the practice in many countries in the world, he said.

He further disclosed that the rebasing exercise was last carried out in 1990.

“We are basing our GDP which is basically structured by the economy and which policies have been based on a pattern, structure that existed in 1990.”

Changes in products, technology, policies over the past 23 years are yet to take effect on the current structure of the nation’s GDP, hence “we might, at the end of the day, misinform decision makers and therefore get our policies wrong”.