Nigeria’s per capita income has once again declined, falling to a pitiful $835.49 in 2025, according to a sobering new analysis from the International Monetary Fund (IMF). Millions of Nigerians’ already precarious living circumstances are being further undermined by this 4.73 per cent drop from the year before.
The news comes as a stark reminder of the ongoing economic challenges facing the nation. While the recent rally of the naira against the dollar has provided some temporary relief, the reality is that the average Nigerian struggles to make ends meet. With an average annual income of roughly N1.25 million (using an exchange rate of N1,500 to the dollar), many families are teetering on the brink of poverty.
Per capita income, a key economic indicator reflecting the average income per person within a country, offers a crucial glimpse into the well-being of a nation’s citizens. A decline signifies that economic growth has not kept pace with population growth, leaving the average individual with less to spend.
This grim picture aligns with recent findings from SB Morgen, a Lagos-based data and intelligence firm. They reported a staggering 72.8 per cent plunge in Nigeria’s GDP per capita since 2014, marking the lowest level since 2004. This dramatic decline, a stark contrast to the modest growth experienced by neighbouring countries like Ghana and Côte d’Ivoire, underscores the fragility of Nigeria’s economic foundation.
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“Nigeria’s GDP per capita has fallen to its lowest level since 2004 when placed against its smaller neighbours,” SBM revealed in their analysis. This stark reality paints a concerning picture of a nation struggling to provide for its citizens.
The consequences of this downward spiral are far-reaching. A shrinking per capita income directly translates to diminished purchasing power, widening the poverty gap and exacerbating existing inequalities. Weak consumer demand, a direct result of low incomes, further dampens economic growth by hindering business expansion and job creation.
Furthermore, this economic malaise fuels a brain drain as skilled professionals seek better opportunities abroad, depriving Nigeria of vital human capital and further hindering its development.
The urgent need for economic reforms is undeniable. The government must prioritise policies that foster sustainable growth, create jobs, and improve the living standards of its citizens. Only then can Nigeria begin to overcome these challenges and unlock its true potential.
