Nigeria’s GDP per capita has decreased to $835.49 in 2025 from $877.07 in 2024, continuing a trend since 2014. The IMF anticipates a recovery with GDP per capita projected to reach $1,040 by 2028. Meanwhile, business confidence is growing, with positive indicators from the PMI. Inflation is expected to drop, and GDP growth projections vary between 3.2% to 5.5% for 2025 depending on economic policies and reforms.
The International Monetary Fund (IMF) has reported a decrease in Nigeria’s Gross Domestic Product (GDP) per capita, which fell to $835.49 in 2025 from $877.07 in 2024, marking a 4.74% decline. This downturn continues a trend that has persisted since 2014, when the GDP per capita was at $3,220. GDP per capita is a significant indicator of a country’s economic health, reflecting the average standard of living for its citizens.
Despite the current decline, the IMF projects a rebound in Nigeria’s GDP per capita in the following years, estimating it to reach $1,040 by 2028. The report indicates that Nigeria and many other sub-Saharan countries fall within a GDP per capita range of $500 to $2,500, with some below $500. This recent economic shift coincides with the National Bureau of Statistics’ rebasing of the GDP, which will include new sectors like digital economy activities, pension funds, and various household and industrial activities.
In positive news, the latest Purchasing Managers’ Index (PMI) from Stanbic IBTC Bank shows improved confidence in Nigeria’s business environment, continuing the private sector growth trend into early 2025. As reported, the private sector saw increased output and new orders in January, indicating customer demand and project commitments are rising. Despite a slight dip from December 2024 metrics, the overall situation looks promising for continued economic activity.
Inflation rates are expected to average 33.1% year-on-year in 2024, driven by factors like exchange rate depreciation and food supply issues. Nonetheless, the IMF anticipates a real GDP growth of 3.2% for 2025, with inflation projected to decrease to 25%. These estimations are lower than the Nigerian Economic Summit Group’s forecast of 5.5%, which is deemed achievable with effective policy implementation.
Olayemi Cardoso, the Governor of the Central Bank of Nigeria, has also expressed optimism for 2025, projecting a 4.1% GDP growth alongside declining inflation rates. His forecasts highlight the effect of government reforms and stability in oil prices on economic performance. With improvements in domestic refining capabilities and a focus on maintaining exchange rate stability, the Central Bank aims for a collaborative approach to achieving growth objectives in the economy.
The article discusses the current economic state of Nigeria as indicated by the International Monetary Fund’s recent report on the country’s GDP per capita. It addresses the challenges presented by declining GDP per capita, while also highlighting potential recovery in the coming years. The discussion includes various economic indicators, projections for future growth, and the overall sentiment in Nigeria’s private sector. Understanding this context is crucial for assessing Nigeria’s economic outlook and the factors influencing these trends.
In conclusion, Nigeria’s GDP per capita has experienced a significant decline, but projections indicate a potential recovery in the coming years as structural changes occur within the economy. The outlook for 2025 remains cautiously optimistic, contingent upon effective policy implementation and economic reforms. The business environment shows signs of resilience, with increased activity in the private sector and a stabilizing inflation rate, which could support overall economic growth moving forward.
Original Source: punchng.com
