The growth in Nigeria’s Gross Domestic Product (GDP) does not equal development of the country and realistically impact on the people.
The number one statistician in the country and director-general, National Bureau of Statistics, Dr. Yemi Kale, said yesterday, stressing that growth in the GDP could not guarantee development.
He stated this during the Second Quarter Securities and Exchange Commission Learning Series with the theme “The Rebased GDP and its Impact on the Nigerian Capital Market”, in Abuja.
According to him, the rebased GDP had nothing to do with the poor populace by way of improving their lots. He, however, said that one of the advantages of the GDP rebasing was to serve as a tool in the hands of policy makers in government.
He regretted that the informal sector of the economy, like the sales of recharge cards, motorbike transport commercial operations, barbing or hair salon business, among others, could not be captured in the GDP, while saying that such sectors as ICT and Manufacturing were toocapital intensive.
He also noted with dismay that many registered companies were not quoted on the country’s stock market, while some, in the last 10 years, had not called for AGMs to declare profits and dividends, for the benefit shareholders, that such development was unhealthy for the nation’s economy.
Kale further said that the country was at advantage with regard to the population growth of its youth, even as he said there was need for the re-distribution of income in a peaceful and positive way, in order to minimise the rate of crime and corruption in the country.
In his presentation, the chief executive of Financial Derivative, Mr. Bismark Riwane, pointed out that it was wrong for Nigeria to have stayed for about 25 years without rebasing its GDP, until this year.
According to Riwane, market-based economy was more efficient than the bank-based economy in Nigeria.