By Chinwendu Obienyi
Despite a positive forecast of 3.2 per cent for Nigeria’s economic growth, new data from the International Monetary Fund (IMF), revealed yesterday, that the country’s per capita income fell to $835.49 in 2025.
This decline represents a 4.73 per cent decrease from $877 in 2024, indicating a continued erosion of household incomes amid a cost-of-living crisis. It suggests that economic growth has not kept pace with population expansion, further exacerbating poverty and income inequality.
A reduction in Nigeria’s per capita income means that, on average, Nigerians are earning less or that economic growth has not kept pace with population growth.
Per capita income is a key economic indicator that reflects the average income per person in a country and is often used to gauge living standards.
The IMF’s projection for Nigeria’s economic growth in 2025 is slightly more optimistic than the global average, which is expected to remain unchanged at 3.2 per cent. However, the country’s economic challenges persist, with inflation projected to steady at 25 per cent in 2025.
The per capita income stood at approximately $3,223 in 2014, but recent estimates by the IMF indicate it has plunged to $835 this year.
Using the average exchange rate of N1,500 to a US dollar, an average Nigerian earns N1.25 million in a year, a situation that has just improved due to the recent rally of the naira.
It would be recalled that the gross domestic product (GDP) per capita income earned by an average Nigerian plummeted by a staggering 72.8 per cent—the lowest it has been since 2004.
This was a result of various policy missteps made in the last decade that, in turn, weakened the economy and worsened living conditions, according to SB Morgen, a Lagos-based data and intelligence-gathering firm.
This dramatic decline, one of the sharpest in the region, shows weakened resilience in the face of internal and external economic pressures.
“Nigeria’s GDP per capita has fallen to its lowest level since 2004 when placed against its smaller neighbors,” a chart by SBM revealed.
While Africa’s most populous nation saw its average income earned per person nosedive in the last 10 years, West African peers like Ghana, Côte d’Ivoire, and even Benin Republic saw modest GDP per capita growth.
Reacting to the development, economic experts stated that this situation has serious implications for poverty levels, consumer demand, and potential brain drain, as skilled professionals may seek better opportunities abroad.
“For Nigeria to reverse this trend, it will need strong policy reforms, increased investment in infrastructure and human capital, and a more diversified economy beyond oil dependency,” they said.