Formal sector contributed 58.82% to economy, says NBS
The National Bureau of Statistics (NBS) yesterday said that the nation’s Gross Domestic Product (GDP) received a 58.82% boost from the formal sector, making it a larger contributor to the economy compared to inputs from the informal sector, which gave 41.43% in 2015.
The bureau made the statistics known yesterday in a revised breakdown of estimated split of formal and informal sector 2015 Gross Domestic Product data made available to journalists in Abuja.
The informal sector refers to the sector in the economy encompassing all jobs, which are not recognized as normal income sources, and on which taxes are not paid. The term is sometimes used to refer to only illegal activity, such as an individual who earns wages but does not claim them on his or her income taxes, or a cruel situation where people are forced to work without pay. However, the informal sector could also be interpreted to include legal activities, such as jobs that are performed in exchange for something other than money.
Whereas the formal sector refers to sector in the economy, which encompasses all jobs with normal hours and regular wages, and are documented, recognized as income sources on which income taxes must be paid.
According to the sector-by-sector breakdown of GDP figures, the oil refining industry topped the formal sector contribution to the GDP with 100% value, while the informal sector gave 00.0 % contribution to the GDP under the period in review.
On the manufacturing side, the formal sector again accounted for 100% contribution to the GDP, while the informal sector gave 00.0% in the same period under review.
The textile industry under the formal sector contributed 72.1% to the GDP, while the informal sector contributed 27.9% to the GDP under the same period.
Also in the electricity, gas and water supply sectors, the formal sector led by contributing 100% each to the nation’s economy, while the informal sector gave 0.0%. On the non-metallic product range, the informal sector contributed 0.0% under same period in review.
On rail transportation contribution to the GDP, the informal sector made 0.0% contribution to the GDP in 2015, while the formal sector accounted for 100% of the GDP in the rail transport sector.