Nigeria’s per capita income has declined to $835.49 in 2025, according to new data from the International Monetary Fund (IMF).
The latest figure shows a 4.73% decline from $877 in 2024 amid the continued erosion of household incomes, rising inflation and sluggish economic growth.
Using the average exchange rate of N1,500 per US dollar, an average Nigerian now earns approximately N1.25 million annually, a situation that has only marginally improved due to the naira’s recent appreciation.
The decline in Nigeria’s per capita income signals that Nigerians are earning less or that economic growth has not kept pace with population expansion.
The IMF data also shows that Nigeria’s GDP per capita has dropped by 72.8% from $3,223 in 2014 to the current $835.
The decline is attributed to various policy missteps over the last decade that have weakened economic output and contributed to rising poverty levels.
The SB Morgen Intelligence firm noted that these challenges have eroded Nigeria’s economic resilience.
“Nigeria’s GDP per capita has fallen to its lowest level since 2004 when placed against its smaller neighbours,” a chart by SBM Intelligence revealed.
The implications of a declining per capita income are far-reaching, affecting purchasing power, consumer demand and overall economic growth.
Lower income levels mean weaker spending power, which could further dampen business activity and slow economic recovery.
A sustained decline in income levels also raises the risk of an increasing brain drain as skilled professionals seek better economic opportunities abroad.
Nigeria has witnessed a surge in emigration, particularly among its educated workforce as deteriorating economic conditions drive talent to more stable economies.
Experts warn that without robust policy interventions, the continued decline in per capita income could worsen inequality, exacerbate poverty and stall economic progress.
To reverse the trend, analysts suggest improving domestic productivity, strengthening industrial output and ensuring macroeconomic stability to spur growth and improve the standard of living for Nigerians.
With Nigeria’s per capita income now at a two-decade low, the urgency for economic reforms and policies that prioritize sustainable growth and job creation has never been greater.
