Gross Domestic Product by Production Approach
Quarterly National Accounts (QNA) are an integrated system of macroeconomic accounts designed to describe the entire system of production in a nation on a quarterly basis. They provide a picture of the current economic status of an economy on a more frequent basis than Annual National Accounts (ANA). In providing a reasonable level of detailed information about the economy, QNA allows the government to regularly assess, analyze and monitor economic developments.
In line with international standards outlined under the United Nations Statistics Division (UNSTATS), four major methodological pillars underpin GDP compilation in Nigeria:
Data for this analysis were obtained from the Quarterly Establishment Survey (QES) conducted by the National Bureau of Statistics (NBS), tax receipts from the Federal Inland Revenue Service, and other administrative sources such as the Nigerian National Petroleum Corporation. The series covers major aggregates of quarterly GDP under 46 activities at current and constant (2010) prices.
Using the above data and standards, GDP is computed as gross output minus intermediate consumption. Both gross output and intermediate consumption are detailed below for each activity:
Under Section A, Division 01-03 of ISIC rev 4, Agriculture is divided into four main activities.
1.1 CROP PRODUCTION
Section A, Division 01 of ISIC Rev 4
Gross Output: Quantities produced multiplied by farm gate price, less losses (wastages).
Intermediate consumption: Seeds, fertilizer, pesticides, hire of farm implements and simple farm tools that are used up in one farming season.
1.2 LIVESTOCK PRODUCTION
Section A, Division 01 of ISIC Rev 4
Gross Output is calculated using the following Live animals and their produce + imports = animals slaughtered and their produce– animals which died of natural causes +exports + change in animal stock.
Intermediate Consumption: Value of animal feeds as input in the production of livestock and livestock products (such as broiler starter concentrate, breeder concentrate, ground cake, guinea corn etc.)
1.3 FORESTRY
Section A, Division 02 of ISIC Rev 4
Gross Output: Value and quantity of timbers of various types (firewood, charcoal, uncultivated materials gathered). Other forest products obtained using the expenditure approach. Sawn-logs, and other wood products categories are obtained using the production method, whereby, the quantity of logs produced is multiplied by the price per cubic of a log.
Intermediate consumption: Expenditure on seeds and sapling, fuel oils, lubricants, feed, hand tools and spare parts, payments for contract work and other services.
1.4 FISHING
Section A, Division 03 of ISIC Rev 4
Gross Output: Measured by multiplying quantity in kilogram by the average price to obtain the value of production.
Intermediate consumption: Intermediate consumption here is captured according to expenditure on fingerlings, nets, feeds and other operating expenses.
Section B, Division 05-09 of ISIC Rev 4.0
2.1 CRUDE PETROLEUM AND NATURAL GAS
Section B, Division 06 of ISIC Rev 4
Gross Output: Quantity of crude petroleum produced (barrels) and Natural gas in million cubic feet (mcf) multiplied by the average price in domestic currency (equivalent of the price in dollar during the accounting period).
Intermediate Consumption: Includes purchase of consultancy services, Transportation, Electricity Bills, Water bills, Cost of Fuel used, Minor Repairs and Maintenance, Medical expense to staff, License & Registration fees, Travelling allowance, Staff Uniform, Rents on machinery & buildings, Spare Parts etc.
2.2 COAL MINING
Section B, Division 05 of ISIC Rev 4
Gross Output: Quantity produced multiplied by the average price.
Intermediate Consumption: Cost of raw materials used; both imported and Local, purchase of consultancy services, transportation, electricity bills, water bills, cost of fuel used, minor repairs and maintenance, medical expense to staff, royalty, travelling allowance, special clothing use at work, rents on machinery & buildings, Spare Parts etc.
2.3 METAL ORES
Section B, Division 07 of ISIC Rev 4
Gross Output: Quantity produced multiplied by the average price
Intermediate Consumption: Cost of raw materials used; both imported and Local, purchase of consultancy services, transportation, electricity bills, water bills, cost of fuel used, minor repairs and maintenance, medical expense to staff, royalty, travelling allowance, special clothing used at work, rents on machinery & buildings, Spare Parts etc.
2.4 QUARRYING AND OTHER MINING
Section B, Division 08 of ISIC Rev 4
Gross Output: Quantity produced multiplied by the average price
Intermediate Consumption: Cost of raw materials used; both imported and local, purchase of consultancy services, transportation, electricity bills, water bills, cost of fuel used, minor repairs and maintenance, medical expense to staff, royalty, travelling allowance, special clothing used at work, rents on machinery & buildings, Spare Parts etc.
Section C, Division 10-33 of ISIC Rev 4.
Gross output =Revenue from sales of goods + Revenue from sales of goods bought for resale (trade margin) + Revenue from rendering services to other +Closing stock of finished goods -Opening stock of finished goods + Closing stock of work-in-progress -Opening stock of work-in-progress
Intermediate consumption = Purchases of raw materials and supplies + Purchases of goods bought for resale + Purchases of packaging materials +Fuels and lubricants +Electricity +Water and Sewerage +Repair and Maintenance +Freight charges and transport +Closing stock of raw materials and supplies - Opening stock of raw materials and supplies +Insurance premium +All other costs and expenses for goods and services
Section D, Division 35 of ISIC Rev 4.
Gross Output: The value of output is the amount of gas and electricity paid for. Hence, value added is the output less intermediate consumption.
Intermediate Consumption=other cost of sales + Indirect expenses
Section E, Division 36 of ISIC Rev. 4
Gross output = Water revenue + Sewage revenue+ New connections
Intermediate Consumption=other cost of sales + Indirect expenses
Section G, Divisions 45 to 47 of ISIC Rev. 4.
Gross Output: This is equal to the trade margin, i.e. the difference between the revenue of goods sold and the value of the goods purchased for resale.
Intermediate Consumption: Goods and services needed to run the trading establishment, such as packaging materials, electricity, office supplies, and rentals.
Section F, Division 41 to 43 of ISIC Rev 4.
Gross Output: Value of work done and other incomes.
Intermediate Consumption: This comprises cement, blocks, metals/iron bars, sand, stone, wood, gravel, other construction inputs, and cost of fuel used by generator, water bills and expenses on internet services/telephone/postage bills during the construction period.
Section I, Division 55 to 56 of ISIC Rev. 4.
Gross Output: Income generated from Accommodation, Catering, Restaurants, Beverage Service activities and Other income
Intermediate Consumption includes expenses incurred in running the businesses.
This industry is broadly categorized under ISIC Rev. 4, Section H, division 49-53. The sector is divided into 6 sub-economic activities.
9.1 ROAD TRANSPORT
Section H, Division 49 of ISIC Rev 4
Gross Output: The output of road transport is the revenue generated for the period under consideration.
Intermediate Consumption: Intermediate consumption consists of fuels and lubricants used electricity bills, water bills, office supplies, and rentals.
9.2 RAIL TRANSPORT AND PIPELINES
Section H, Division 49 of ISIC Rev 4
Gross Output: Receipts from passengers, goods traffic and subventions from Federal Government. The Petroleum Pipeline Product income is from the transportation of petroleum products and crude oil to designated depots and refineries in Nigeria.
Intermediate Consumption: This consists of the summation of all expenses incurred in the production process such as fuels and lubricants used, electricity bills, water bills, office supplies, and rentals.
9.3 WATER TRANSPORT
Section H, Division 50 of ISIC Rev 4
Gross Output: Receipts from passengers and goods traffic.
Intermediate Consumption: Fuels and lubricants used for electricity bills, water bills, office supplies, and rentals.
9.4 AIR TRANSPORT
Section H, Division 51 of ISIC Rev 4
Gross Output: Receipts from passengers and Cargoes (goods traffic).
Intermediate Consumption: Fuels and lubricants used, electricity bills, water bills, office supplies, and rentals, Spare parts, Consultancy, Audit fees
9.5 TRANSPORT SERVICES
Section H, Division 52 of ISIC Rev 4
Gross Output: Receipts from services for storage and transportation activities.
Intermediate Consumption: Fuels and lubricants used, transportation costs, electricity bills, water bills, office supplies, and rentals.
9.6 POST AND COURIER SERVICES
Section H, Division 53 of ISIC Rev 4
Gross Output: Receipts from services rendered on the number of mails and parcels handled.
Intermediate Consumption: Fuels and lubricants used, transportation costs, electricity bills, water bills, office supplies, and rentals.
Categorized under ISIC Rev. 4, Section J, Division 58-63, the sector is divided into 4 economic activities:
10.1 TELECOMMUNICATION AND INFORMATION SERVICES
Section J, Division 61 to 63 of ISIC Rev 4.
Gross Output: Revenue from telephone, telex, Facsimile, telegraph, and other income from satellite and internet services.
Intermediate consumption: Transit fees, operational expenditure, minor repairs and maintenance and other expenses.
10.2 PUBLISHING
Section J, Division 58 of ISIC Rev 4
Gross Output: Revenue from publishing services.
Intermediate consumption: This includes details of the cost structure including transportation fees, operational expenditure, minor repairs etc.
10.3 MOTION PICTURE AND SOUND RECORDING
Section J, Division 59 of ISIC Rev 4.
Gross Output: Revenue generated/total sales from the number of movies and sound recordings produced including revenue generated from TV rights, royalties and fees.
Intermediate consumption: Detail on the cost structure of operating firms including transportation fees, operational expenditure, minor repairs and maintenance, and other administrative expenses.
10.4 BROADCASTING
Section J, Division 60 of ISIC Rev 4
Gross Output: Public corporation data derived from Accountants General’s reports, while the private component relies on revenue generated from services rendered e.g. advertisement.
Intermediate consumption: Details of the cost structure of market participants which include transportation fees, operational expenditure, minor repairs and maintenance
Section R, Division 90-93 of ISIC Rev 4.
Gross Output: Revenue generated was estimated in two categories: one as a market output and the second as non-market output (public establishments)
Intermediate consumption: Details of the cost structure were obtained from the financial reports of firms.
Section k, Division 64-66 of ISIC Rev 4, Finance and Insurance Services is divided into two (2) sectors.
12.1 FINANCIAL INSTITUTIONS
Section K, Division 64 of ISIC Rev 4
Gross Output: Gross output for financial services are measured by Financial Services Indirectly Measured (FISIM).
Gross Output = Implicit service charges (FISIM) +Explicit service changes.
Intermediate Consumption: Details of the cost structure are extracted from the data supplied such as; Currency Issue Expenses, Administrative Expenses, Repairs and Maintenance, Consultancy Fees, Bank Charges, Audit fees, Directors related expenses
12.2. INSURANCE
Section K, Division 65 of ISIC Rev 4
Gross Output:
The Output of life insurance: Output = Actual premiums earned + Plus Premium supplements -Benefits due -Minus Increases (plus decreases) in life insurance technical reserves
Output of non-life (General) insurance: Output = Actual premiums earned +Premium supplements - Adjusted claims incurred
Output of funded pension fund: Output = Actual pension contributions + Supplementary contributions -Benefits due +Plus Change in the actuarial reserves + Property income
Intermediate consumption: consists of the cost structure (operating expenses) from the annual reports of institutions.
Section L, Division 68 of ISIC Rev 4
Gross Output: Sum of fees and commissions receivable for the services rendered.
Intermediate consumption: Details of the cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.
Section M, Division 69-75 of ISIC Rev 4.
Gross Output: Sum of revenues receivable for the services rendered.
Intermediate consumption: Details of the cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.
Section N, Division 77-82 of ISIC RE 4.
Gross Output: Sum of fees and commissions receivable for the services rendered.
Intermediate consumption: Details of the cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.
Section O, Division 48 of ISIC Rev. 4
Gross output Basic = Intermediate consumption (Less commodity sales and fees) +Compensation of employees+ Consumption of fixed capital +Other taxes less subsidies on production.
Section P, division 85 of ISIC Rev. 4.
Gross Output: Consists of government production, which is a non-market service offered without charge or at a price not economically significant, and private production, offered at the market price.
Government Production (non-market service):
Gross output Basic=+Intermediate consumption (Less commodity sales and fees) +Compensation of employees + Consumption of fixed capital +Other taxes less subsidies on production.
Private Production (market service):
Gross output Basic=Total output -Intermediate consumption + other taxes less subsidies on production.
Intermediate consumption: Details of cost structure including transportation fees, operational expenditure, minor repairs and maintenance etc.
Section Q, Division 86-88 of ISIC Rev. 4.
Gross Output: Consists of government production, which is a non-market service offered without charge or at a price not economically significant, and private production, offered at the market price.
Government production (non-market service):
Gross output Basic = Intermediate consumption (Less commodity sales and fees) +Compensation of employees+ Consumption of fixed capital + Other taxes less subsidies on production.
Private production (market service):
Gross output Basic = Total output -Intermediate consumption+ other taxes less subsidies on production.
Intermediate consumption: Details of the cost structure of operators including transportation fees, operational expenditure, minor repairs and maintenance etc.
Section S Division 94 to 96 of ISIC Rev.4.
Gross Output: Income generated from the various services rendered.
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