The IMF warns Nigeria’s GDP per capita has declined to a record low of $835.49, indicating shrinking prosperity despite overall economic growth. This decline, attributed to naira depreciation and population growth, reflects poor living standards. Comparatively, Nigeria’s GDP per capita trails behind many African nations. Although the IMF anticipates a gradual recovery, experts insist on necessary reforms to stimulate improvement and combat rising poverty levels.
Nigeria is facing a concerning trend of declining GDP per capita, which signals deteriorating living standards despite overall economic growth. The International Monetary Fund (IMF) has highlighted this downturn as indicative of challenging economic conditions, urging policymakers to implement strategies for sustainable and inclusive economic growth. The latest figures reveal that Nigeria’s GDP per capita has decreased to $835.49 in 2025, marking a significant drop of 74.08% since 2014, largely due to naira devaluation and rapid population growth.
This decline in GDP per capita affects the purchasing power and quality of life for Nigerians, positioning the country among the lowest in Africa regarding economic prosperity. Comparative data shows Nigeria lagging behind other nations, with South Africa at $6,517.1 and Morocco at $4,470.6. In the global context, the typical GDP per capita for developing nations is around $17,060, indicating that Nigeria is struggling to keep pace with both regional and global peers.
Despite these challenges, the IMF projects a slight recovery in Nigeria’s GDP per capita, anticipated to rise to $940.2 by 2026 and potentially reach $1,047.08 by 2030. This recovery trajectory suggests that Nigeria may only surpass the $1,000 mark by 2028, well behind its counterparts. To counteract this trend, experts recommend implementing structural economic reforms, enhancing productivity, and increasing investments in critical sectors of the economy.
The issue of declining GDP per capita in Nigeria arises from several factors impacting the country’s economic health since the pandemic. GDP per capita is a crucial indicator of economic prosperity and living standards; thus, its decline points to worsening conditions for citizens. High population growth rates paired with currency depreciation have exacerbated the situation, leading to a significant decrease in citizens’ purchasing power and overall economic well-being. As Nigeria seeks to recover from the pandemic’s adverse impacts, understanding these underlying issues is critical for policymakers crafting effective economic strategies.
The persistent decline in Nigeria’s GDP per capita denotes significant challenges in achieving economic prosperity for its citizens. While the IMF offers a hopeful outlook for gradual recovery in the coming years, the current figures reveal a stark reality of economic disparity. Urgent structural reforms and policy interventions are essential to reverse the trend of declining living standards and ensure sustainable growth that benefits all Nigerians.
Original Source: tribuneonlineng.com
