New data from the International Monetary Fund (IMF) has revealed that the average income per person in Nigeria has reduced to $835.49 in 2025, further shrinking the living standards of the people.
This drop represents a modest 4.73 per cent fall from $877 in 2024, highlighting the continued erosion of household incomes amid the raging cost of living crisis.
Using the average exchange rate of N1,500 to a US dollar, an average Nigerian earns N1.25 million in a year, a situation that has just improved due to the recent rally of the naira.
A reduction in Nigeria’s per capita income means that, on average, Nigerians are earning less or that economic growth has not kept pace with population growth.
Per capita income is a key economic indicator that reflects the average income per person in a country and is often used to gauge living standards.
Earlier reports showed that the gross domestic product (GDP) per capita income earned by an average Nigerian plummeted by a staggering 72.8 per cent, the lowest since 2004.
According to SB Morgen, a Lagos-based data and intelligence gathering firm, this is as a result of various policy missteps made in the last decade that have weakened the economy and worsened living conditions.
The per capita income stood at approximately $3,223 in 2014, but recent estimates by the IMF it has plunged to $835 this year.
“Nigeria’s GDP per capita has fallen to its lowest level since 2004 when placed against its smaller neighbours,” a chart by SBM revealed.
