Nigeria now Africas Largest Economy: Matters Arising FACT: The World has been assessing the Nigerian Economy based on the GDP of 1990 (24 years ago). What this means is that the so-called poverty index bandied about have been based on 1990 estimates. In the 1990s, only the wealthiest of Nigerians had Cellphones popularly called nought-nine-nought (090).. The same period, Nollywood was in its neonate stages, on VHS Cassettes.Today, Nollywood adds 1.2 % to our GDP. Today, GSM providers, recharge card sellers etc have swelled up market volumes from the TELECOMS Sector. Are the naysayers telling us to blind ourselves to these realities on ground? As a student, I had no phone. My typewriter even gave me an aristocratic look in the University of Ibadan, among my peers. Today, some primary school pupils have iPads, phones, Opon Imos or Learning tablets etc. Were these gadgets not purchased from somewhere? Dont they add to total trades within a sovereign nation? Now what is GDP and why is it so important? According to INVESTOPEDIA, The gross domestic product (GDP) is one the primary indicators used to gauge the health of a countrys economy. It represents the total dollar value of all goods and services produced over a specific time period - you can think of it as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the last year. Measuring GDP is complicated (which is why we leave it to the economists), but at its most basic, the calculation can be done in one of two ways: either by adding up what everyone earned in a year (income approach), or by adding up what everyone spent (expenditure method). Logically, both measures should arrive at roughly the same total. The income approach, which is sometimes referred to as GDP(I), is calculated by adding up total compensation to employees, gross profits for incorporated and non incorporated firms, and taxes less any subsidies. The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending and net exports. As one can imagine, economic production and growth, what GDP represents, has a large impact on nearly everyone within that economy. For example, when the economy is healthy, you will typically see low unemployment and wage increases as businesses demand labor to meet the growing economy. A significant change in GDP, whether up or down, usually has a significant effect on the stock market. Its not hard to understand why: a bad economy usually means lower profits for companies, which in turn means lower stock prices. Investors really worry about negative GDP growth, which is one of the factors economists use to determine whether an economy is in a recession. I was shocked to review the actual OPERATIONAL DEFINITION OF EMPLOYMENT and discovered that we have been either LYING TO OURSELVES on the rate of unemployment, or REDEFINING EMPLOYMENT as JUST PAID EMPLOYMENT exclusive of SELF- EMPLOYMENT. Definition of EMPLOYMENT according to the INTERNATIONAL LABOUR ORGANIZATION (ILO): Persons in employment comprise all persons above a specified age who during a specified brief period, either one week or one day, were in the following categories: - paid employment; - self employment. Context: Persons who during a specified brief period such as one week or one day, (a) performed some work for wage or salary in cash or in kind, (b) had a formal attachment to their job but were temporarily not at work during the reference period, (c) performed some work for profit or family gain in cash or in kind, (d) were with an enterprise such as a business, farm or service but who were temporarily not at work during the reference period for any specific reason. (Current International Recommendations on Labour Statistics, 1988 Edition, ILO, Geneva, page 47). Source Publication: International Labour Organization (ILO) Resolutions Concerning Economically Active Population, Employment, Unemployment and Underemployment Adopted by the 13th International Conference of Labour Statisticians, October 1982, para. 9. ............................................. ........................................ In the developing world, successful small businesses are the primary engines of job creation, income growth, and poverty reduction. That is a fact. Two-Thirds of American jobs come from small business The U.S. Census Bureau data reports that more than 77 percent of small businesses consist of one employee. Additionally, about 18 percent are considered “micro- businesses”, or companies that employ less than 10 individuals. But suprisingly, in Nigeria, a hairdresser or photographer sees himself as unemployed! Shockingly true. A barber in a small street corner rakes in sometimes 6,000 naira daily (even with power generating sets), makes a net profit of 4,000 naira daily after fuelling costs,but still complains of being ”unemployed” because he is not a banker, government worker or other typical Nigerian stereotype of what employment is. Some of these barbers apply for jobs in Government ministries, Departments and Agencies (MDAs) or banks and other private companies, depriving those with genuine unemployment claims of job opportunities. Of course it is a desireable thing to move up the social ladder with higher paying job opportunities but the truth must be told, those in small businesses are not unemployed. Never. They may not be satisfied with their personal incomes because of their inability to live within their means, but that does not qualify them as ”unemployed” per se. Records show that some barbers even ”earn” more than the ‘office job’ they seek in the MDAs would have paid them. But the opportunities to indulge in corrupt practices is probably the real lure. In time past, it was not fashionable to seek for government jobs. Private sectors paid higher as the dream of a young graduate was either the oil companies or at worst, banking sector. The opportunities for job creation is actually improving in Nigeria. The power sector is obviously improving by the day as attested to by even sworn naysayers. Agriculture, capable of providing job opportunities for millions, has been revitalized with the various opportunities in place for farmers and agro-allied small businesses. Excerpts from the recent Sure and Steady Transformation Report in the Past 12 months shows that the Ministry of Agriculture and Rural Development has developed and is aggressively implementing an Agricultural Transformation Agenda. The focus is to assure food security, reduce expenditure of foreign exchange on food imports, diversify the economy, generate foreign exchange and create jobs. In a major departure from past approaches, agriculture is now being treated as a business, not a development program. The agenda is focused on major policy reforms to eliminate corruption in the seed and fertilizer sectors, improve the functioning of market institutions, establish staple crop processing zones to attract private sector into areas of high production to reduce post-harvest losses, add value to locally produced crops and foster rural economic growth. In addition, the agenda includes improvement in rural infrastructure and access of farmers to financial services and markets. It will be beneficial for all Nigerians if we cash in on the new opportunity for our common growth instead of playing politics with obvious realities. This is no time to be politically JEALOUS of our new status as Africas largest economy because a President Jonathan is in office at this time. This is the time to build upon any success achieved over the years, no matter how minuscule it may be. STOP BREEDING ILLITERATES AND ALMAJIRIS IN THE NORTH AND STOP BOMBING SCHOOLS. MODERATE SPRAYING AT PARTIES JUST TO SATISFY YOUR EGO ALLOW WOMEN ESPECIALLY IN THE NORTH TO BECOME MORE EDUCATED OR TRAINED IN SKILLS USEFUL FOR ECONOMIC WELL- BEING HARNESS THE ENORMOUS POTENTIALS IN AGRICULTURE AND NON-CROP FARMING LEARN ENTREPRENEURAL SKILLS FROM PRIMARY SCHOOLS STAGES TO TERTIARY SCHOOL STAGE BE TRUE TO YOURSELF - DONT DEPRIVE OTHERS OF EMPLOYMENT OPPORTUNITIES WHEN YOU ALREADY ARE IN PAID EMPLOYMENT. IT CAN ONLY GET BETTER. GOD BLESS NIGERIA
Posted on: Tue, 08 Apr 2014 06:30:03 +0000
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