BRF
•Nigeria’s wealthiest reside in Abuja,
Lagos
The planned rebasing of Nigeria’s
Gross Domestic Product (GDP) is expected to raise Lagos State to Africa's 13th
biggest economy by 2014, a report assessing the respective economies of the 36
states of the federation has shown. In its latest report titled, “Nigeria
Unveiled: Thirty Six Shades of Nigeria” Renaissance Capital (RenCap), an
investment and financial advisory firm, also said that with a per capita income
of approximately $4,000, which is more than double the national average of
$1,700, the wealthiest people in Nigeria reside in the Federal Capital
Territory (FCT). Abuja’s per capita income is equivalent to that of Tunisia and
Ukraine. With a per capita income of $2,900, Abuja is followed by Lagos with
second wealthiest residents in the country, which puts it at par with Morocco
and Sri Lanka. The report showed that while much has been written in recent
years about Nigeria’s rising economic significance, very little is known about
the country’s 36 states.
It said Lagos State’s economy would be
equivalent to the Ghanaian economy post-GDP rebasing, adding that the heart of
Nigeria’s $284 billion GDP economy is clearly in Lagos. Rencap said: “We base
our analysis on states’ internally generated revenue, which make up 15 per cent
of state government revenue, and consumption data, as proxies for state income.
“Lagos State produces about 12 per cent of Nigeria’s GDP, which is equivalent
to $32 billion by 2013 ending. Post rebasing, which we now expect in early
2014, we estimate a 40 per cent upward revision in the country's national
income. “By our estimates, the Lagos State economy will become Africa's 13th
biggest economy in 2014 at approximately $45 billion – equivalent to that of
Ghana.”
According to the report, Nigeria’s
second wealthiest state is in the north. “Kano State is Nigeria’s second
wealthiest economy, with an economy of $17 billion, by our estimates, which is
equivalent in size to Botswana’s economy. “Kano State is the anchor state of poorer
northern Nigeria. Historically, Kano State has been a commercial and
agricultural state. In pre-colonial times, Kano city, the state capital, served
as the southernmost point of the famous trans-Sahara trade routes. “Kano State
has produced some of Nigeria’s most influential and wealthiest people,
including Africa’s richest man, Aliko Dangote. Interestingly, Dangote’s great
grandfather, Alhassan Dantata was the wealthiest man in West Africa during the
colonial period. “Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi’s
grandfather held the influential position of Emir of Kano,” the report said.
It also stated that there are opportunities for banks to expand services and employees into states with a combination of high income and high population density, adding that this would provide the footfall required for branch expansion.According to the report, states with such opportunities include Anambra, Imo, Abia, Akwa Ibom, Rivers and Osun. Continuing, it said: “Consumers are more likely to buy branded goods in the FCT, Lagos, Delta and Rivers States. This, we infer from these states’ relatively low food spend/total consumption expenditure, which implies relatively high discretionary income. “We think these states may also drive air travel, and may prove to be higher value-added customers for telecoms companies. “We believe food retailers have expansion opportunities in states beyond the southern region that are characterised by relatively high food spend, such as Nassarawa, Niger and Kaduna.”
The report also delved into other
areas of the north-south divide showing that there is a notable difference
between both regions in terms of household sizes. “Nigeria’s (richer) south-west
states have smaller household sizes than its (poorer) northern counterparts. As
is true globally, middle-class families tend to have fewer children, and invest
more in each individual child. “The states with the biggest household sizes are
the two northern, neighbouring states of Bauchi and Gombe, where households
are, on average, made up of over seven people.
“Lagos is among the states with the
smallest household sizes – (4.9 people). Given that Lagos State is the most
densely populated state in Nigeria, and its average household size is
relatively small, the implication is that property prices (per square metre)
must be expensive compared with those in other states,” the report stated. The
report also showed that Lagos has the highest net primary school completion
ratio in Nigeria at 70.6 per cent, adding that the south-west population is
more likely to have completed primary school than its counterparts in northern
Nigeria. “The most educated workforce in coming years will also be apparent in
the south and south-west, where at least 60 per cent of the children complete
secondary school. “We think education levels in the south and south west are
likely to spur even faster growth, as we have seen in emerging markets
globally.”
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