General Problems Encountered in the Compilation of National Income Figure in Nigeria
1. Inadequate statistical data
2. Depreciation and different principles being used to calculate capital consumptions. The problem here is how to value the amount of capital used up in the process of production.
3. Limitations carried by price changes. Rise in price leads to over estimation of national income figures.
4. Problem of assessment of net income to or from abroad because of the activities of smugglers.
5. Problem of double counting which is the case of transfer payment and value of intermediate goods.
6. Predominance of subsistence economy makes calculation very difficult.
7. The problem of classification i.e. what goods should be classified under which class. The problem that arises here is the estimation of the value of non-commercial elements.