The International Monetary Fund (IMF) says that Nigeria has witnessed a worsening economic downturn in 10 years, with its GDP per capita plummeting by 72.35 per cent.
The IMF stated on its website that Nigeria’s GDP per capita declined from $3,022 in 2014 to just $835.49 in 2024, signaling a sharp contraction in the average economic output per person.
According to the report by the Punch newspaper on Sunday, the data released on the IMF website, showed that Nigeria’s total Gross Domestic Product—the overall value of goods and services produced—also fell steeply, from $568.5bn recorded in 2014 to $194.96bn in 2024, marking a staggering 65.71 per cent decline over the period.
The report added that beyond the contraction in economic output, Nigeria’s real GDP growth has also slowed considerably.
The IMF data also showed that real GDP growth, which measures economic expansion adjusted for inflation, stood at 6.3 per cent in 2014 but has dropped to 2.9 per cent in 2024.
It explained that Nigeria’s economic crisis has been exacerbated by policy reforms initiated in 2023 under President Bola Tinubu, who is currently in Ethiopia for the African Union summit, just a week after visiting Emmanuel Macron in France.
The fuel subsidy removal— one of the reforms, triggered a sharp increase in petrol prices, fueling inflation that surged to 34.8 per cent in December 2024.
The simultaneous devaluation of the naira further eroded purchasing power, driving up import costs and worsening inflationary pressures.
Nigeria is also struggling to meet its oil production targets under the Organisation of Petroleum Exporting Countries, limiting foreign exchange earnings.
Tinibu’s efforts to stabilise the economy have not yielded the desired result despite claims by his political allies that there were signs of growth.
GIK/APA