Nigeria’s economy in 2025 faces significant challenges compared to other African nations. The country’s GDP per capita has dropped to $835.49, marking a decline of 4.73% from the previous year. This is notably lower than neighboring countries like Ghana, which boasts a GDP per capita of $5,716.
The depreciation of the Nigerian naira and slow economic growth have contributed to this disparity.While the World Bank projects a growth rate of 3.8% for Nigeria and other African economies in 2025, this recovery remains fragile due to structural inequalities and external pressures.
In comparison, countries like Côte d’Ivoire and Benin Republic have shown more resilience in maintaining modest GDP per capita levels.Nigeria’s economic struggles have led to reduced purchasing power, widening poverty lines, and weakened consumer demand. These factors highlight the need for transformative policies to address deep-rooted inequalities and foster sustainable growth.
Nigeria’s GDP growth rate is projected at 3.8%, which aligns with the average growth rate for African economies. However, this growth is fragile due to structural challenges such as heavy reliance on oil revenues, high inflation, and exchange rate volatility
In contrast, countries like Côte d’Ivoire and Rwanda have diversified their economies, focusing on sectors like agriculture, technology, and tourism, which provide more stable growth trajectoriesNigeria’s GDP per capita stands at $835.49, reflecting a decline of 4.73% from the previous year.
This is significantly lower than countries like Ghana, which boasts a GDP per capita of $5,716. The depreciation of the Nigerian naira and slow economic growth have contributed to this disparityNigeria faces soaring inflation rates, which erode consumer purchasing power and widen poverty lines.
In comparison, countries like Botswana and Mauritius have managed to maintain lower inflation rates through disciplined fiscal policies and economic diversificationNigeria’s public debt burden is estimated at approximately ₦134.30 trillion (US$91.35 billion). This is compounded by shallow government revenues, which stand at around 6% of GDP.
Other African nations, such as Kenya and South Africa, have implemented more effective debt management strategies to mitigate fiscal vulnerabilitiesWhile Nigeria continues to rely heavily on oil, efforts to diversify into non-oil sectors like agriculture, ICT, and transportation are ongoing. However, insecurity and climate change pose risks to agricultural production.
Countries like Ethiopia and Morocco have made significant strides in agricultural innovation and export opportunitiesTo improve its economic standing, Nigeria needs transformative policies that address deep-rooted inequalities, foster sustainable growth, and reduce dependency on oil.
Investments in education, infrastructure, and technology could help Nigeria catch up with more resilient economies in Africa to improve Nigeria’s economy, a combination of targeted policies and reforms could address its structural challenges and unlock growth potential.
Through the Diversification of the Economy, we can be, investing in modern agricultural techniques, irrigation systems, and value-added processing to boost productivity and exports, promoting tech startups and digital infrastructure to position Nigeria as a hub for innovation in Africa especially for the youths and the young ones.
We can encourage local manufacturing through tax incentives, reduced import duties on machinery, and support for small and medium enterprises (SMEs).
Through Fiscal and Monetary Reforms, we Broaden the tax base by formalizing the informal sector and improving tax collection efficiency broader boards, implement strategies to reduce public debt and ensure sustainable borrowing practices, and Strengthen monetary policies to stabilize inflation and enhance purchasing power.
Through Infrastructure Development, we can expand the Energy Sector, Expand access to reliable electricity by investing in renewable energy sources and upgrading the national grid. We can also improve good transportation by Developing road, rail, and port infrastructure to facilitate trade and reduce logistics costs. And also promote affordable housing projects to address urbanization challenges and create jobs.
Through Foreign Exchange and Trade Policies, we try to stabilize Exchange Rate by implementing measures to stabilize the naira and reduce reliance on the black market, and also promote exportation by providing incentives for export-oriented industries and reduce bureaucratic bottlenecks for exporters, and lastly create a conducive environment for foreign direct investment (FDI) through policy consistency and investor-friendly regulations.
Through Social and Human Capital Development, we can Increase funding for education, particularly in science, technology, engineering, and mathematics (STEM) fields, Improve healthcare infrastructure and access to ensure a healthy workforce, and also Expand programs to support vulnerable populations and reduce poverty. These policies, if implemented effectively, could address Nigeria’s economic challenges and pave the way for sustainable growth.
