Nigeria’s economy has suffered a $310 billion loss in GDP over the past decade, driven by naira devaluation, low productivity, and stagflation. Once Africa’s largest economy, Nigeria now ranks fourth behind South Africa, Egypt, and Algeria. From $510 billion in 2014, the nation’s GDP dropped to $199.7 billion in 2024, reflecting the currency’s sharp depreciation and the impact of inconsistent economic policies. Experts warn that despite plans to rebase the economy, these measures may not restore Nigeria’s top position without substantial reforms.
Economists emphasize the need for economic diversification, improved productivity, and infrastructure development. Exchange rate depreciation has been a key factor in the GDP decline, with the naira depreciating 16-fold since 2014. Rebasing efforts could increase GDP in dollar terms by capturing more economic activities, but analysts argue that structural challenges, including high debt and regulatory inefficiencies, need urgent attention for sustainable growth.
Recent optimism surrounds the naira’s potential recovery in 2025, driven by increased domestic refining capacity and dollar bond issuance. However, experts urge the government to address inflation, restore investment-grade credit ratings, and reduce borrowing costs to stimulate investment. Selling oil assets and restructuring debt could provide the financial leverage needed to stabilize the economy and regain competitiveness as Africa’s economic leader.