Africa (Commonwealth Union) _ Nigeria, Africa’s largest oil producer and home to over 200 million people, is grappling with an unprecedented economic crisis. Over the past decade, the nation has witnessed a sharp downturn, with its GDP per capita plummeting by a staggering 72.35%. According to data from the International Monetary Fund, Nigeria’s GDP per capita fell from $3,022 in 2014 to a mere $835.49 in 2024, signaling a significant erosion in economic output per citizen.
The country’s total GDP also suffered a dramatic contraction, declining from $568.5 billion in 2014 to just $194.96 billion in 2024, a 65.71% drop that underscores the country’s worsening financial distress. While real GDP growth stood at 6.3% in 2014, it has dwindled to just 2.9% in 2024, reflecting a sluggish and struggling economy.
The economic downturn has been exacerbated by policy decisions under President Bola Tinubu’s administration, particularly the removal of fuel subsidies in 2023. This move triggered an immediate and steep increase in petrol prices, sending inflation soaring to 34.8% by December 2024. At the same time, the devaluation of the naira further weakened purchasing power, causing import costs to surge and intensifying economic hardships for millions of Nigerians.
Despite government efforts to stabilize the economy, key indicators present a different picture. Former Zenith Bank Chief Economist Marcel Okeke has warned that the perception of economic recovery is merely an illusion. “The government urges citizens to tighten their belts, yet all indicators show we are moving backward,” he remarked.
The naira’s depreciation has been particularly alarming. In May 2023, it traded below N500 per dollar, but by 2024, it fluctuated between N1,000 and N1,500 per dollar, despite interventions. Fuel prices skyrocketed from under N200 per liter in 2023 to nearly N1,000, significantly straining household budgets.
While Nigeria’s crude oil production recently met its OPEC quota of 1.53 million barrels per day for the first time since November 2023, structural challenges like pipeline vandalism and underinvestment continue to threaten stability.
Experts stress that urgent policy changes are necessary to reverse the economic decline. Without a strategic focus on industrial growth, trade balance, security, and energy stability, Nigeria’s economic woes will persist. As millions struggle to maintain their livelihoods, the promise of progress remains a distant hope rather than a reality.
