Ministers Speech KEYNOTE ADDRESS

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	Federal Republic of Nigeria Dr. Goodluck Ebele Jonathan GCFR

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	Federal Republic of Nigeria and Chairman, National Planning Commission, Arc. Namadi Mohammed Sambo, GCON

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	Federal Republic of Nigeria and Deputy Chairman NPC Dr. Shamsuddeen Usman CON ( Speeches ) More info >>

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Ministers Speech

A KEYNOTE ADDRESS BY THE HONOURABLE MINISTER/DEPUTY CHAIRMAN, NATIONAL PLANNING COMMISSION, DR. SHAMSUDDEEN
DRAFT A KEYNOTE ADDRESS BY DR. SHAMSUDDEEN USMAN, OFR, HONOURABLE MINISTER/DEPUTY CHAIRMAN, NATIONAL PLANNING COMMISSION AT THE 2-DAY SENSITIZATION WORKSHOP ON STATE GROSS DOMESTIC PRODUCT (GDP) COMPUTATION FOR NIGERIA HELD IN CALABAR, CROSS RIVER STATE, SEPTEMBER 16-17, 2010 PROTOCOL I am greatly delighted to address you on this very important occasion of the sensitization workshop on the Computation of the State Gross Domestic Product (GDP) for Nigeria. Today’s event is important for several reasons. First, it is the first step in the activities lined up for the production of Nigeria’s State GDP and constitutes an attempt to create awareness on the need for the States to buy into the initiative for the computation of State GDP. The event is also coming on the heels of the formal launching of the Nigerian Vision 20:2020 Economic Transformation Blueprint by Mr. President and the approval of the First Implementation Plan for NV20:2020 by the Federal Executive Council. Today’s event could also provide us with inputs towards deepening the implementation of the Plan at all levels. 2. The extent of commitment of the current Administration to medium and long term strategic planning for the country has been aptly demonstrated by the deliberate measures taken to address critical issues in the area of statistics development at all levels of Government, including the recent endorsement of the National Strategy for the Development of Statistics (NSDS - 2010 to 2014) by the Federal Executive Council. The NSDS is aimed at transforming the entire statistical system of Nigeria covering Federal MDAs, State and LGA Statistical Units. It is in this context that this workshop is being organized by the National Planning Commission in close collaboration with the National Bureau of Statistics and the Governors’ Forum secretariat. 3. As you are aware, the Gross Domestic Product is the most comprehensive parameter for measuring the level of economic activity in any economy. It measures of the heartbeat of the economy during a period of time and can be computed at the national and sub-national levels of the economy. It is currently being computed at the national level in Nigeria. The GDP serves as a veritable tool for policy makers in policy formulation and decision making. 4. Given the renewed interest in expanding the policy space at the lower levels of Government in Nigeria, it becomes necessary to address the important issue of data and information gathering, including disaggregated GDPs at these levels which will provide the basis for evidence based policy choices. It has also become more necessary than ever before for the Nigerian Statistical System to further improve its data generation efforts, especially in the area of revenue and expenditure. This is expected to facilitate transparency and accountability as well as monitoring and evaluating of key programmes of Government. It is in this context that efforts are being made by the Federal Government to commence the production of State GDP for Nigeria. 5. The States’ GDP concept is relatively new across the globe compared to the national GDP that has its origin since well over a century ago. It is the most comprehensive and reliable measure of economic activity at the sub-national levels in Federal economies. This is expected to be developed within the national framework, using standardized methodology and procedures to ensure consistency and credibility of the results. The exercise is also intended to draw from experiences and lessons from countries such as the United States of America, Australia and India that have made regular use of the State GDP in their economic management efforts. Accordingly, the State GDP is expected to serve as basis for benchmarking the economies of the States and FCT, as well as engender healthy competition amongst them on periodic basis. This is also expected to generate considerable healthy competition among the States of the Federation, while producing disaggregated data and information for improved management of the State economies. 6. Your Excellencies, Distinguished Ladies and Gentlemen, let me acknowledge that some State Governments including the Cross River State have initiated moves towards the computation of their State GDPs. There is however a need to caution that States of the Federation cannot individually determine their respective GDP as all States GDP within the Federation must sum up to the National GDP. The process also has to be appropriately sequenced to avoid duplication of efforts and resources, while ensuring that the methodology to be adopted for the exercise conforms with acceptable international standards and practices. I therefore challenge participants to come up with appropriate methodology in that regard. 7. As part of the efforts towards deepening the GDP computation process and indeed statistics development at the Federal and sub-national level, the Federal Government has worked tirelessly in the recent past to reform and strengthen the National Bureau of Statistics (NBS). The NBS has been repositioned and empowered to work closely with States to produce credible statistics for planning. It is also reassuring to note that a comprehensive National Strategy for Development of Statistics (NSDS) for the Nigerian Statistical System (NSS) has been developed and that the State GDP computation is a critical element of its agenda. 8. In order to underscore the importance of the State GDP computation project, an actionable work plan, including timelines for implementing the SGDP computation as well as budgetary requirements for the Project, including the possible sources of funding, has been developed by the Steering Committee on the project which I inaugurated over a year ago. The exercise is intended to be undertaken in two phases. The first phase is to cover the planning and pilot study, while the second phase is to cover the training of enumerators and actual field work survey. A total budgetary estimate of N1.632 billion has been projected for the exercise. This is to be shared among the Federal and Sub-national Governments as well as the development partners in the ratio of 40:30:30 respectively. I therefore urge the relevant stakeholders to contribute to this respective process. 9. Your Excellencies, Distinguished Ladies and Gentlemen, given the background of the resource persons and distinguished participants at this workshop, I expect you to discuss frankly and come up with concrete decisions on the roadmap to be adopted for the implementation of State GDP computation for Nigeria. 10. At this juncture, I wish to use this opportunity to appreciate the Statistician-General and members of the Steering Committee for working tirelessly in organizing this event. My thanks also goes to the officials of the Nigerian Governors’ Forum for their collaborative efforts thus far. Let me also extend my gratitude to the development partners, especially the UNDP for their commitment and financial support towards the hosting of this workshop. I will also like to thank the resource persons for accepting our invitation to make presentations at the workshop. 11. Finally, I wish to specially thank His Excellency, the Executive Governor of Cross River State, Senator Liyel Imoke for accepting to host and financially support this very important workshop in Calabar, the People’s Paradise City. The effort of the economic team members of the Cross River State is also immensely appreciated. 12. I thank you for your attention.

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