IMF Report Reveals Nigeria’s Economic Struggle: 12th Poorest Country Globally

Nigeria has been ranked the 12th poorest Country Globally by Gross Domestic Product (GDP) per capita, with a GDP per capita of $807. This ranking is based on a recent report by the International Monetary Fund (IMF) published by Visual Capitalist. Despite being one of Africa’s largest economies by total GDP, Nigeria’s low per capita income highlights the persistent economic hardship faced by a significant portion of its population.

Key Factors Contributing to Nigeria’s Ranking:

– Chronic Conflict: Ongoing conflicts have hindered economic growth and development.

– Fragile Institutions: Weak institutions have limited the Country’s ability to effectively manage its economy.

– Limited Industrial Bases: Nigeria’s economy is heavily reliant on a few industries, making it vulnerable to fluctuations.

Comparison to Other Countries:

– South Sudan: Ranked as the poorest Country Globally, with a GDP per capita of $251.

– India: Despite being the fourth-largest economy by total GDP, India is ranked 50th poorest with a GDP per capita of $2,878.

Africa’s Economic Underrepresentation:

– Population vs. Economic Output: Africa accounts for 19% of the Global population but only 3% of the $113 trillion world economy.

– Underlying Issues: Chronic conflict, fragile institutions, and limited industrial bases continue to suppress income growth in many African Countries.

The African Development Bank projects Nigeria’s economic growth to rise to 3.4% in 2025, driven by improved security, higher oil production, and stronger consumer demand. Additionally, the start of production at the Dangote refinery is expected to reduce energy costs, further supporting economic recovery.