Nigeria’s Per Capita Income Drops to $835.49 in 2025 Amid Economic Struggles

Nigeria’s average income per person has declined to $835.49 in 2025, marking a 4.73% drop from $877 in 2024, according to new data from the International Monetary Fund (IMF). This downturn further worsens living conditions in the country, reflecting the ongoing cost-of-living crisis.

Using the average exchange rate of N1,500 per US dollar, the per capita income translates to N1.25 million annually, a figure that has slightly improved due to the recent naira rally. However, this decline signals that economic growth has failed to keep pace with population expansion, reducing the average earnings of Nigerians.

Nigeria’s Per Capita Income at 20-Year Low

BusinessDay earlier reported that Nigeria’s GDP per capita has plunged by 72.8% since 2014, reaching its lowest level since 2004. The country’s per capita GDP was approximately $3,223 in 2014 but has now dropped to $835, making it one of the sharpest declines in the region.

According to SB Morgen (SBM), a Lagos-based intelligence firm, policy missteps over the past decade have significantly weakened the economy, worsening poverty levels and reducing household purchasing power.

Comparisons with Regional Peers

While Nigeria’s per capita income has drastically fallen, neighboring West African countries like Ghana, Côte d’Ivoire, and Benin Republic have managed to maintain modest economic stability. The latest data shows that Nigeria’s economy has struggled compared to its smaller regional counterparts.

Implications of Falling Per Capita Income

A declining per capita income has severe economic consequences:
• Rising poverty and inequality: Lower earnings reduce purchasing power, exacerbating poverty and widening the wealth gap.
 . Weak consumer demand: As disposable incomes shrink, businesses may struggle with reduced sales, hindering economic expansion.
• Increased brain drain: Falling income levels could push skilled professionals to seek opportunities abroad, worsening Nigeria’s talent exodus.

With Nigeria’s economic resilience weakening, policymakers face increasing pressure to implement reforms that drive sustainable growth, stabilize incomes, and boost investor confidence.