Thursday 4 June 2015

Nigeria’s Gross National Disposable Income (GNDI) drops by 10.56%

Nigeria’s Gross National Disposable Income (GNDI) has continued to witness sharp decline on Year-on-Year (YOY) basis, when values of the nation’s Quarter One(Q1) 2015 and Quarter Four(Q4) of 2014 are juxtaposed,the National Bureau of Statistics(NBS) has said.

The GNDI was arrived at by totalling the sum of Gross National Income(GNI) and net transfers from the rest of the world.

Although, the bureau in Q1 2015 expenditure report made available to The Guardian admitted that the nominal value of GNDI grew by 3.61 per cent to the tune of N20.09 trillion in Q1 of 2015, it affirmed however that it was lower than values of Q1 and Q4 of last year, which stood at 10.56 per cent and 13.44 per cent respectively, due largely to drop in world oil price and sliding value of the Naira among other variables.

This is even as the report recorded a quarter by quarter drop of national disposable income at 8.73 per cent.

“Year-on-Year, national disposable income in nominal values grew by 3.61 per cent in Q1 2015 to N 20.09 trillion. This was lower than the growth rates recorded in Q1 and Q4 of 2014 which were recorded at 10.56 per cent and 13.44 per cent respectively.

Quarter on quarter, national disposable income slowed by 8.73 per cent, while 76.10 per cent of national disposable income was allocated by households for consumption in Q1 2015”, the report said.
The report further indicated that the nation’s Gross Fixed Capital Formation (GFCF), which captures investment activities carried out in the economy, showed that investment level generally rose in Q1 to N3.6 trillion ,representing a nominal rise of 12.62 per cent, when compared with values of N3.2 trillion recorded in the corresponding quarter of 2014.
“Investment in Q1 2015 rose to N3.6 trillion. Compared to N3.2 trillion in the corresponding quarter in 2014, this represented a nominal increase of 12.62 per cent. The share to expenditure on GDP was 16.97 per cent during Q1, 2015, higher than 15.71 per cent in Q1 2014, and 16.63 per cent in Q4 2014.

“In real terms, GFCF, increased by 9.72 per cent year-on-year, lower than rates recorded in Q1 2014 and Q4 2014 by 10.36 per cent and 2.73 per cent respectively. Driven by growth in non-residential buildings and purchases in machinery and equipment, which contributed 83.16 per cent and 22.37 per cent to growth respectively, GFCF accounted for 17.16 per cent of real GDP in Q1 2015, higher when compared to 16.14 per cent in Q1 2014, and 15.17 per cent in Q4 2014”, the report stated.
NBS stated that export of goods and services on a nominal basis, declined by 18.34 per cent year on year, from N4.051 trillion in Q1 of 2014 to N3.308 trillion in Q1 2015.

Credit: Chuka Odittah/Nigerian Guardian

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