Nigeria’s per capita income has plummeted by 72.8% since 2014, hitting its lowest point since 2004. This stark drop, attributed to prolonged economic mismanagement, has had dire impacts on the nation’s standard of living, as noted by SB Morgen, a Lagos-based research firm. The average income per Nigerian has fallen from around $3,223 in 2014 to $877, according to the International Monetary Fund (IMF), marking one of the region’s most significant declines. Comparatively, neighboring West African nations, including Ghana and Cote d’Ivoire, have managed modest gains, underscoring Nigeria’s policy-driven economic woes.
Experts point to a pattern of poor policy-making as the primary cause of this economic decline. According to SBM Intel, Nigeria’s income per capita has uniquely declined since 2014, starkly contrasting to neighboring economies that have experienced growth despite shared regional challenges. This trend reveals Nigeria’s struggle to maintain resilience amid global pressures. The Nigerian Economic Society president, Adeola Adenikinju, further noted that Nigeria’s GDP per capita has been underperforming since 1960, falling significantly behind nations like China and India over the decades.
Additional insights reveal that the Nigerian economy’s poor growth and low productivity are exacerbating this income crisis. Once the continent’s largest economy, Nigeria’s nominal GDP has now shrunk to $285 billion, making it only the fourth largest in Africa. Samuel Sule, CEO of Renaissance Capital Africa, attributed the income decline to the combined effect of declining GDP (in USD terms) and rapid population growth, resulting in a lower standard of living for Nigerians compared to other frontier markets and African neighbors.
