Nigeria’s per capita income has slumped to an all-time low due to productivity bottlenecks and unstable macroeconomic conditions that weakened the exchange rate stoked inflation and led to high interest rates, according to Ayo Teriba, CEO Economic Associates.
Teriba, who featured as a guest on BusinessDay Television on Monday said this situation is “multiplying the miseries and woes” Nigerians have to face, pushing them to “pay more” by having their incomes eroded and purchasing power weakened.
His comments came against the backdrop of the International Monetary Fund (IMF)’s updated data showing that Africa’s biggest oil producer’s per capita income declined to $835.48 in 2025.
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This drop represents a 4.73 percent fall from $877 it stood in 2024, highlighting the continued erosion of household incomes amid a raging cost-of-living crisis.
Teriba however stressed that for Nigeria to go back to days where its gross domestic product per person was about $3,223 in 2014, the government needs to open key sectors of the economy like telecoms, power and railway for investors to come in and “saturate them”.
“Opening the economy for investors will also bring in foreign direct investment that can boost our reserves and lead to macroeconomic stability.
“As investment rises, it beefs up foreign reserves, stabilises exchange rates and enables inflation to come down,” the renowned economist said.
He stated that investment inflows will fill the gaps in infrastructure, power and transportation sectors that would lead to employment opportunities, boosting the livelihoods of Nigerians.
BusinessDay had earlier reported that the gross domestic product (GDP) per capita income earned by an average Nigerian has plummeted by a staggering 72.8 percent, the lowest it’s been since 2004.
This is as a result of various policy missteps made in the last decade that have weakened the economy and worsened living conditions, according to SB Morgen, a Lagos-based data and intelligence gathering firm.
“Nigeria’s GDP per capita has fallen to its lowest level since 2004 when placed against its smaller neighbours, a chart by SBM revealed.
But while Africa’s most populous nation saw its average income earned per person nosedived in the last 10 years, West African peers like Ghana, Cote d’Ivoire and even Benin Republic GDP per capita was modest.
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A tanking per capita income has serious implications for the country as it reduces purchasing power thereby widening poverty levels and worsening inequalities.
“The supply-side dynamics play a crucial role in addressing the current economic challenges. The CBN has undertaken measures to intervene in the FX market, resulting in a comparatively more stable environment.
“This may lead to an improvement in per capita income”, said Paul Alaje, chief economist and partner at Lagos-based business management consultancy firm SPM Professionals.
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