Question

An article in the Economist on the revisions to Nigeria’s GDP commented: “The GDP revision is not mere trickery. It provides a truer picture of Nigeria’s size by giving due weight to the bits of the economy, such as telecoms, banking and the Nollywood film industry, that have been growing fast in recent years.”

1. What does the article mean by “giving due weight” to the sectors of the economy that have been growing quickly?

2. How did the Nigerian National Bureau of Statistics accomplish the task of giving these sectors their due weight?

3. Why does making this change in calculating GDP provide a truer picture of the size of Nigeria’s economy?

Answer 1

A) Giving due weight means giving emphasis on the sectors that effect the calculation of GDP. It will help to know which sectors are performing well while which needs help for development.

B) By changing the method of GDP calculation. GDPGDP Revis survey helps to know which sectors contribute more towards GDP.

C) Making change in calculating GDP will provide true picture of the size of nigeria's economy by giving a fair picture of the sectors which are contributing towards GDP growth. It also reflect the sectors that need investment or by government intervention to uplift them, which are not contributing toward GDP accumulation.