IMF Releases Nigeria’s Per Capita Income, Says Nigerians Now Poorer Than Ghanaians, Others
- Nigeria’s per capita income has reduced to $835.49 in 2025 and has affected people’s living conditions
- A new report by the International Monetary Fund (IMF) says the decline represents about 4.7% compared to the 2004 figure
- At N1,500 per dollar, Nigerians earn an average of N1.25 million annually compared to the 2024 figure
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The average income per person in Nigeria has reduced again to $835.49 in 2025, dropping people’s living standards.
According to new data from the International Monetary Fund (IMF), the drop represents a 4.73% fall from $877 in 2024, showing the consistent depreciation of household incomes as the cost of living crisis escalates.
Source: Getty Images
Nigerians now earning less than in 2004
Per capita income (PCI) is the average income per person in a specific area or country. It's a key metric in economics and statistics that's used to measure the standard of living and quality of life for a population.
At the average exchange rate of N1,500 per dollar, an average Nigerian now earns N1.25 million per year, a recent improvement due to the appreciation of the naira in the FX market.
A drop in Nigeria’s per capita income means that Nigerians are earning less on average or that economic growth has remained slow relative to population growth.
Reports say that Nigeria’s gross domestic product (GDP) per income earned by an average Nigerian has fallen by 72.8%, the lowest since 2004.
Experts outline the consequences of falling income
The development is due to several policies in the last decade that have weakened the economy and exacerbated living conditions.
SB Morgen, a Nigeria data and intelligence gathering firm, says Nigeria’s GDP per citizen was about $3,223 in 2014. However, the IMF estimate shows that it has fallen to $835 in 2025.
A report by BusinessDay says that the decline, one of the sharpest in Africa, reflects a weakened resilience amid internal and external headwinds.
According to SBM, Nigeria’s GDP per capita has declined to its lowest since 2004 compared to its smaller neighbours.
Other African countries earn more
In other African countries such as Ghana, Cote d’Ivoire, and the Benin Republic, GDP per capita has remained modest.
GDP per Capita in Ghana is estimated to be $5,716 international dollars at the end of 2024.
A declining per capita income has severe implications for Nigeria as it reduces purchasing power, widens the poverty lines and worsens inequalities.
A low GDP per capita may lead to weaker consumer demand, dampening business growth and expansion and economic growth.
The naira depreciates
Experts have attributed the decline in per capita income to a depreciation of the Nigerian currency, which has caused the exodus of foreign firms in the country.
According to them, more Nigerians are now without jobs due to low productivity and the informal sector is also shrinking rapidly.
President Bola Tinubu’s government devalued the naira twice in two years, sending the exchange rate soaring.
The naira has lost over 70% of its value from N460.702 per dollar to about N1,607 in 2024.
However, the naira has begun to show signs of stability with experts saying it may be finding its actual value.
As of February 6, 2025, the naira local currency exchanged for N1,500 in the official window and N1,610 in the parallel market.
World Bank releases Nigeria’s economic growth forecast for 2025
Legit.ng earlier reported that the World Bank has projected Nigeria's Gross Domestic Product (GDP) growth rate to be 3.5% in 2025 and 3.7% in 2026.
This was revealed in the January 2025 edition of the bank's Global Economic Prospects report, released on Thursday, January 17.
According to the World Bank report, Nigeria's economic growth improved to an estimated 3.3% in 2024, while modest growth is expected in 2025.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
