ABUJA, Nigeria – The International Monetary Fund (IMF) has ranked Nigeria as the 12th poorest country in the world by GDP per capita, pegging the figure at $807 in 2025. This is despite Nigeria being Africa’s fourth-largest economy by overall GDP.

The new data highlights the widening economic gap in the country, where millions face worsening poverty, inflation, and limited access to essential services.

A Sharp Drop in Personal Income

According to the IMF, Nigeria’s GDP per capita has fallen by over 70% in the last decade—from about $3,022 in 2014 to $807 in 2025. This places Nigeria among the world’s poorest nations by per-person income, behind countries like Liberia, Sierra Leone, and Nepal.

 “Nigeria’s economy is growing on paper, but shrinking in the hands of its citizens,” a Lagos-based economist told Daily Observer.

Why the Decline?

Key drivers of the downturn include:

Naira devaluation

High inflation rates

Rapid population growth

Dependence on oil exports

Weak infrastructure and institutions

These factors have left millions of Nigerians behind, despite macroeconomic progress.

⚖️ Inequality Deepens

The IMF report also draws attention to rising income inequality in Nigeria. While the country’s economic elite continues to thrive, over 60% of the population lives in multidimensional poverty, particularly in rural areas.

Nigeria’s GDP per capita remains far below its African counterparts:

Country GDP per Capita (2025)

South Africa $6,517

Morocco $4,470

Egypt $3,160

Kenya $2,186

Nigeria $807

Global Context

The global average GDP per capita in 2025 is $14,213. Nigeria’s figure is over 17 times lower, underlining the urgent need for inclusive economic reforms.

What’s Next for Nigeria?

The IMF projects a slow recovery, with Nigeria’s GDP per capita expected to rise to $940 by 2026 and possibly exceed $1,000 by 2028.

To reverse the trend, the Fund recommends:

Stabilizing the naira

Diversifying the economy away from oil

Investing in education, healthcare, and infrastructure

Strengthening governance and transparency

Public Reaction: The ranking has sparked widespread concern among citizens, civil society groups, and economists, who are calling on the government to take urgent steps to address the root causes of poverty.

By Daily Observer

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