Nigeria’s Per Capita Income Hits 20-Year Low Amid Economic Decline
By Okafor Joseph Afam
November 4, 2024
Nigerians’ per capita income has plummeted to its lowest point in two decades, dropping by a drastic 72.8% and reaching levels last seen in 2004.
This sharp decline is attributed to a series of policy missteps that have, over the past decade, weakened Nigeria’s economy and deteriorated living conditions, according to findings by SB Morgen, a Lagos-based data intelligence firm. A recent International Monetary Fund (IMF) report places Nigeria’s per capita income at just $877 in 2024, a significant drop from $3,223 in 2014. This steep fall signals the erosion of economic resilience, as Nigeria struggles under both domestic and global pressures.
SB Morgen’s latest report revealed, “Nigeria’s GDP per capita has fallen to its lowest level since 2004 when compared to its smaller neighbors.” West African countries like Ghana, Côte d’Ivoire, and Benin Republic have maintained modest growth in per capita income over the past decade, highlighting Nigeria’s unique economic challenges. In fact, Nigeria is the only country in the region to see a consistent decline in income per head since 2014.
SB Morgen noted that Nigeria’s economic struggles are not due solely to global factors, as similar headwinds affect other ECOWAS nations. Rather, the report emphasizes the impact of poor economic policies and missed opportunities in Nigeria over the past decade.
Adeola Adenikinju, president of the Nigerian Economic Society and professor of economics, provided historical perspective, pointing out Nigeria’s longstanding issues with GDP per capita. “In 1960, Nigeria’s GDP per capita was around $230, nearly double that of China and higher than India’s. But by 2023, Nigeria’s per capita income was just 7% of China’s,” Adenikinju remarked.
The economic fallout has been extensive, with Nigeria’s nominal GDP shrinking from its previous position as Africa’s largest to the fourth-largest at $285 billion in 2024, a decline attributed to low productivity and growth.
Samuel Sule, CEO of Renaissance Capital Africa, linked the drop in per capita income to the fall in GDP in dollar terms alongside Nigeria’s population growth. He added, “Nigerians are less well-off and have lower living standards than they did a decade ago, especially when compared with many other frontier markets, including neighboring African nations.”
As Nigeria faces ongoing challenges, experts argue that urgent economic reforms are needed to improve the standard of living and restore economic stability.
