Business
Nigeria ranks third poorest in W/Africa by GDP per capita
…as analysts blame wrong policies of this government
Nigeria’s poverty challenge appears to be escalating, and really worsening as the country now is performing badly in its regional block, where it used to be the father Christmas. A recent World Bank/IMF report has been ranked the third poorest country in West Africa, and the 12th in the world by GDP per capita in 2025. Some analysts are pointing accusing fingers at the shameful management of our economy since the return of the Fourth Republic in 1999.
The new data from the International Monetary Fund published by Visual Capitalist has exposed Nigeria’s fragile economy and the extreme poverty in the land, showing that much of the wealth has been shared by the elite political class at the expense of the people.
The report, released on June 24, reveals Nigeria’s GDP per capita at $807, placing it among the bottom 15 out of 50 countries surveyed. South Sudan tops the list as the poorest country, with a GDP per capita of $251, followed by Yemen, Burundi, the Central African Republic and Malawi.
Despite being once Africa’s largest economy by total GDP, Nigeria’s low per capita figure underscores the persistent economic hardship faced by a significant portion of the population. From a GDP of $500 billion in 2015, the country has slumped to $375 billion while it’s population continues to grow at the same average rate of three percent, as the economy.
Responsible Factors
“Chronic conflict, fragile institutions, and limited industrial bases continue to suppress income growth in many of them, even as the global economy rebounds after the pandemic,” Visual Capitalist said.
The report added that Africa is underrepresented on the global stage, noting that the continent accounts for 19 percent of the world’s population, and three percent of its trade.
“Africa, in particular, is heavily underrepresented on the world stage. It accounts for 19% of the global population and only 3% of the $113 trillion world economy,” Visual Capitalist added.
India also appears on the list, ranking as the 50th poorest country with a GDP per capita of $2,878, despite being the fourth-largest economy in the world by total GDP. India has about 1.2 billion population.
The report ranked other African countries, such as Madagascar, Sudan, the Democratic Republic of Congo, Mozambique and Niger among the poorest globally.
The report attributes the poor rankings to factors, such as conflict, weak institutions, underdeveloped infrastructure, corruption, and limited industrial output, which have stifled economic growth across many African nations.
Analysts have been reacting to Nigeria’s placement as the third poorest country in West Africa by GDP per capita. They criticize successive Nigerian leaders for this sorry pass, emphasizing the need for political leaders to redirect genuine attention to national economic and social development.
Dr. Ikubolaje Adewale, a development economist, told Business Hallmark that “The IMF assessment speaks to the dysfunction at the center of political leadership, and poor governance at the level of fiscal and monetary management. No Nigerian leader since 1999 with the exception of Obasanjo has made a conscious attempt to tackle development issues. “They are only interested in what they can get out of the system. Obasanjo was able to assemble technocrats, who were genuinely interested in economic development, growth and sound economic policies.”
Corrupt Politicians
This view was shared by Mr. Fehintola Dada, a public affairs analyst and former chairman of Kabba/Bunnu local government, Kogi state. Dada noted that “Per capita is slow in spite of huge GDP because few political and economic elite have grasped over 80 percent of the wealth, and the purchasing power parity is huge, there is no way we can continue when there’s persistent economic hardship faced by a significant portion of the population, weak institutions, underdeveloped infrastructure and limited industrial base, the informal sector is under stress as a result of crippling economic policies.”
The data also show that while Nigeria’s economy is large in absolute terms, its population size significantly drags down its per capita output. Analysts say this reflects deep structural issues in the country’s economy, with income and opportunities concentrated among a small elite while the majority struggle with poverty, inflation and inadequate public services.
Rich Countries Get Richer
The report further underscores the economic gap between Africa and the rest of the world. While the global average GDP per capita in 2025 is estimated at $14,213, Nigeria’s figure is nearly 18 times lower. In total, Africa accounts for 19 percent of the global population but only 3 percent of global economic output.
While GDP per capita is not a complete measure of wealth or living standards, it provides insight into how much economic productivity is generated per citizens. Economists warn that unless Nigeria invests in inclusive growth, job creation and key sectors like education, health and infrastructure, its development will continue to lag behind.
Factors like corruption, poor governance, misplaced economic policies, weak institutions, poor economic infrastructure for the growth of small and medium scale industries and inequalities are some of the reasons often fingered for poverty and hardship.
Dr. Olugbule Olusesan of the Centre for Public Policy Clinic, said the third poorest rating in West Africa “is as result of misplaced priorities of those at the helms of affairs. Several factors can be identified as contributing to this decline: Corruption, which diverts public funds from crucial sectors like education and healthcare, hindering poverty reduction efforts. And we have seen this play out severally in this country. How many corrupt officials have been successfully sent to jail? How many high profile convictions?”
He also identified a lack of strong institutions and effective governance as factors that have hampered economic growth and development. In addition, he mentioned policy missteps, adding that, “Past policy decisions have also been criticized for weakening the economy and worsening living conditions.”
Olusesan noted that while Nigeria used to the largest economy in Africa in terms of overall GDP, its GDP per capita is significantly lower than many of its peers, including South Korea, which had a lower GDP per capita in 1960 but has since become a global economic power.
According to the IMF, Nigeria has experienced a slower reduction in poverty rates compared to other sub-Saharan African countries.
Former President of the African Development Bank, Dr. Adesina, not too long ago claimed that Nigerians are worse off now than in 1960. “Our GDP per capita in 1960 was $1,847 compared to the current $824,” he said in a lecture.