ESA/STAT/AC.105/20
DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS
STATISTICS DIVISION
UNITED NATIONS
________________________________________________________________________
Expert Group Meeting on Industrial Statistics
New York, 19-23 September 2005
Two United Nations Plaza, Conference Room 23rd floor
DATA COLLECTION STRATEGY COVERING SMALL UNITS
(COUNTRY PRACTICE – NIGERIA).
Solomon Olaye
National Bureau of Statistics, Nigeria
EXPERT GROUP MEETING ON
INDUSTRIAL STATISTICS, NEW YORK
DATA COLLECTION STRATEGY COVERING SMALL UNITS
(COUNTRY PRACTICE – NIGERIA).
BY
DR. SOLOMON OLAYE
HEAD (NATIONAL ACCOUNTS DIVISION)
NATIONAL BUREAU OF STATISTICS
19 – 23 September, 2005
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DATA COLLECTION STRATEGY COVERING SMALL UNITS
INTRODUCTION
Most of the discussions on industrial development in developing countries have been driven
by developments in the industrially advanced countries. Countries South of the Sahara are
faced with many years of poor performance in economic management resulting into
deteriorating poverty situations, consistent declining productivity within the industrial sector,
rising external debt and general economic disequilibrium. The economic problem of
developing countries are today very complex and if these problems are to be solved and
natural development sustained, the countries need to do a more rigorous analysis of their
economic situation.
This analysis can only be useful or targeted towards resolving the economic crisis if it is
based purely on the following:
(i)
Evidence based data.
(ii)
Improved scope and method of data collection.
(iii)
Consistency in compilation of various macroeconomic aggregate.
(iv)
Transparency/Accountability in the use of the various economic aggregates in
governance.
This paper therefore looks at efforts in recent times made in Nigeria in improving economic
statistics via establishment surveys, General Household Surveys and Survey of
Administrative Statistics.
HISTORICAL BACKGROUND
The survey of manufacturing industry in Nigeria has been put on a fairly systematic basis
since 1963. Each year the Federal office of Statistics conduct the survey covering
employment range 10 persons and above.
In 1973, during the survey plan it was decided that an attempt should be made to cover those
establishments which employed less than ten persons which are hitherto excluded.
In 1995, a National Census of Industries and Businesses (NCIB) was conducted which
targeted not only establishments employing 10 persons plus but, and also establishments
employing 5 persons and above. The planning stage of that survey led to the compilation of a
business register. This register was compiled by physical listing of establishments in various
economic activities and across the nation.
In 2001, an establishment survey aimed at collecting information on quarterly basis was
instituted, and other manufacturing, wholesale and retail trade, building and construction,
hotel and restaurants, oil refining, cement and broadcasting sectors were considered. These
surveys have been consistent since 2001 till the 1st quarter of 2004. The objective of that
survey was to make data available for the compilation of quarterly Gross Domestic Product
(GDP).
SURVEY DESIGN
Two major issues desire mentioning here with regards to the survey design and they are the:
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(i)
(ii)
Frame
Sectoral Sample Allocation procedure.
THE FRAME
The Frame was an updated establishment listing which was a merger of physical listing
earlier mentioned during the NCIB and the Valued Added Tax (VAT) register. The registers
was checked for duplication and was updated through an establishment listing exercise
known as QUICK listing. This frame covered all economic activities and all employment
bands. The survey was conducted covering the General Household Survey (GHS) which falls
under National Integrated Survey of Households (NISH) and the Establishment survey which
falls under the National Integrated Survey of Establishment (NISE).
This survey is characterized by small units. The sector is household, the survey type is
National Survey of Household, the sampling unit is members of Household. In the case of
the establishment survey, the sector is Corporate, the survey type is National Integrated
Survey of Establishment, the survey frame is the updated merged establishment frame, and
the reporting unit is each Enterprises/Establishment.
SECTORAL SAMPLE ALLOCATION PROCEDURE
The survey was aimed at providing data both annual and quarterly GDP compilation/revision.
In this context the sectoral allocation was based on the weight of the affected sectors viz-aviz their contribution to GDP. This procedure produced numbers of the sectors. In some
sectors, the numbers proved to be too small compared to expectations or prior knowledge of
that sector and this created initial bottleneck in the sectoral sample allocation process. In
another sector, we had the case of over-sampling. In the final analysis, the number oversampled for that sector was considered as a discrepancy and this was re-distributed to other
sectors through proportional procedure to bridge up the gap in the sectoral expectations.
This survey eventually covered establishment in all employment bands 0 –5, 6 – 10, 11 – 49,
50 – 99, 100 – 999, 500 – 999, 1000+, Households and Unincorporated establishment.
MANUFACURING INDUSTRY:
The survey covered effective sample of 94 establishments engaging 5 persons and above.
Within the period of January 2003 – March 2004, the average response rate was 88.6% while
the lowest response rate of 81.9% was recorded in the first quarter of year 2004. The
highlights of the survey are given below.
EMPLOYMENT IN MANUFACTURING INDUSTRY:
In the Manufacturing Industries, the highest number of persons engaged was 296,301 in the
third quarter of year 2003 while the lowest number of 287, 804 was recorded in the first
quarter of year 2003.
On yearly basis, the lowest of 287, 295 persons engaged were recorded in the year 2002,
while the highest number 292,617 was recorded in the year 2000.
On the average, the quarterly basis, 93% of the number engaged was paid employees while
73% of paid employees were operatives.
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In the Non-Metal Mineral Products except machinery and equipment, the percentage of Paid
Employees rose to 97% in the 1st Quarter of year 2003, and dropped to 85% in the 1st Quarter
of 2004. 79% of the Paid Employees are Operatives in the 1st Quarter of year 2003 and 73%
in the 1st Quarter of year 2004. While in the Other Manufacturing Industries, the percentage
of Operatives dropped to 47% in the 1st Quarter of year 2003, and 43% in the 1st Quarter of
year 2004.
WHOLESALE AND RETAIL TRADE
The survey covered a selection of establishments engaging 5 persons and above from all ISIC
(Rev 3) sectors in the Wholesale & Retail Trade vis-a-vis Other Services. 159 establishments
were selected out of which 47, 80 and 32 establishments were from Wholesale Trade, Retail
Trade and Other Services respectively. It is interesting to observe that the highest response
rates of 86% and 79% in the year 2003 and the first quarter of 2004 respectively were from
the Retail Trade sub-sector.
The fact remains that this sector is unique and heterogeneous that is, Wholesale Trade; Retail
Trade and Other Services. Hence, the highlights of some economic indicators of the survey
within the three sub-sectors or otherwise are given below.
EMPLOYMENT IN WHOLESALE AND RETAIL TRADE:
The highest number of persons engaged i.e. 56,894 and 56,294 persons in the first quarters of
2003 and 2004 with 55,738 persons or 98% and 55,930 persons or 99% being paid employees
respectively were from the Other Services sub-sector in 2003 and the first quarter of 2004
were operatives. This is, however, the highest among the three sub-sectors.
BUILDING AND CONSTRUCTION:
The total number of 25 establishments from this sector was selected out of 284
establishments in the frame. The response rate for year 2000 was 56%, in year 2001 it was
60% and 52% in 2002. 52% was recorded in year 2003. The first quarter of year 2004
recorded 44%.
EMPLOYENMENT IN BUILDING AND CONSTRUCTION:
The number of persons engaged in year 2000 was 338,140. Year 2001 recorded 336,184 with
257,097 in the 2002 and331,705 was recorded in year 2003. The first quarter of year 2004
recorded 330,516 as number of persons engaged.
Based on year 2000, percentage of persons engaged recorded 99% increase and fell in the
year 2002 by 76% and rose again to 98% in the year 2003.
Number of paid employees was 331,294 in the year 2000, 332,235 in the year 2001: 252,781
in the year 2002 and then rose to 324,680 in the year 2003. 1st Quarter of 2004 recorded
306,678. Paid employees increased by 28% in 2001 and decreased by 24% in the year 2002
and increased by 28%.
Artisans recorded 230,844 persons in the year 2003; 170,238 in the year 2002; 219,231
persons in the year 2001 and 212, 176 persons in the year 2000.
As depicted above the Nigerian Business activities accounts for a substantial part of the total
Economic activities both in terms of employment band and in terms of the contribution to the
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growth of the Gross Domestic Products. Periodical surveys of industries enable us to track
the business circles and also provide bases for assessing trend in the economy. To this end the
Federal Government has taken a bold step of making Statistics the central core of its
Economic reform programme. A new statistical Act is now before parliament. Soon it will
be passed as Statistical Act 2005 of National Bureau of Statistics. The objective of
Transforming the formal Federal Office of Statistics to National Bureau of Statistics is to
enhance its capability to effectively and efficiently provide robust and reliable statistics that
will help government to monitor, evaluate and implement her policies. In particular, it have
become obvious that adequate and reliable statistical information are urgently needed for
implementation of the current National Economic Empowerment and Development Strategy
(NEEDS) and the monitoring of the progress made in attaining the Millennium Development
Goals (MDGS).
As the Apex for Data Management Institution in Nigeria, National Bureau of Statistics has
the onus responsibility of ensuring that standards are maintained. We therefore wish to
express gratitude to UNSD for making it possible for one of its staff to participate in these
Experts discusses which will help to further stimulate and improve our capacity building of
industrial statistics in Nigeria.
In 2005, a comprehensive survey was conducted by the National Bureau of Statistics in
collaboration with the Central Bank of Nigeria. The survey covered all economic sectors in
the country. The scope and coverage of this survey was extensive and the objective is to
provide data on major economic indicators but with the sole aim of improving the Annual
and Quarterly GDP of Nigeria.
CONCLUSION
Nigeria has had the opportunities of collecting data that are Household and Establishment
based. She has also had the opportunity frequently of collecting data on the informal sector.
In many countries, especially developing ones, a large number of persons are involved in
informal sector production, which has a significant role in employment creation, income
generation, and poverty reduction. Data on the size and characteristics of the informal sector
and its contribution to GDP are thus required for research and policy making.
REFERENCES
1.
UNITED NATION SYSTEM OF NATIONAL ACCOUNTS 1993
2.
ADAMU, Samuel O; National Accounting in a Developing Country, The Case of Nigeria.
3.
FEDERAL MINISTRY OF NATIONAL PLANNING, LAGOS, NIGERIA; The National
Accounts of Nigeria 1973 – 1975
4.
AKNBINU, Ajibayo; Industrial Reorganization for Innovation Current knowledge of
small and medium Enterprises Clusters in Western Nigeria. NISER Mangraph series No
8,2003 Ibadan, Nigeria.
5.
OECD; A Handbook, Measuring the Non-observed Economy, 2002.
6.
THE NIGERIAN ECONOMIC SUMMIT GROUP; Economic Indicators Oct. – Dec.
2001 vol 7, Number 4
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