Nigeria, the fourth-largest economy in Africa, experienced a constant annual growth rate (CAGR) of -16.02% in its GDP per capita over the past five years

Key takeaways:

  • At -16.02% CAGR, Nigeria's GDP per capita is shrinking fast, signalling deep economic strain on its population despite being a top 4 African economy.
  • Angola recorded 8.28% CAGR, showing that smaller economies can drive significant per capita progress when policies and investments align with citizen welfare.
  • With 8.23% CAGR, Algeria continues to transform national wealth into measurable benefits for its people.
  • Ethiopia’s 6.86% annual growth in GDP per capita highlights how consistent development efforts can raise living standards even in densely populated, developing nations.
  • A modest 2.52% CAGR for South Africa might not sound like much, but in a mature economy, this reflects resilience and relative stability in per capita income.
  • Egypt has a -1.41% CAGR, showing mild contraction, but far less severe than Nigeria’s economic shrinkage.

Between 2020 and 2024, Nigeria recorded the sharpest decline in nominal GDP per capita among Africa’s top 10 economies, with a -16.02% annual contraction. While most of the other African top economies managed moderate to strong gains in their citizens’ average economic wellbeing, Nigeria moved in reverse.
Similarly, on average, Egypt experienced a decline in its GDP per capita during the period. Meanwhile, countries like Angola and Algeria saw constant annual growth rates of over 8%, significantly improving the average economic situation of their people. This shows that GDP growth alone isn’t enough — how that growth is distributed and sustained over time also matters.

Source:

IMF

Period:

2020-2024
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Nigeria’s slice of Africa’s economy since independence: From a peak of 31% to 7% in 2024
  • At independence in 1960, Nigeria contributed about 10% of Africa’s GDP, establishing itself early as one of the continent’s largest economies.
  • Nigeria’s share peaked at 31% in 1981 during the oil boom, highlighting the dramatic impact of natural resources on the economy.
  • Between the mid-1980s and 2000s, Nigeria’s share fluctuated significantly, dropping to 9.2% in 1999 due to political instability, economic mismanagement, and external shocks.
  • By 2024, Nigeria’s share fell to 7.1%, despite a GDP of $187.8 billion, showing slower relative growth compared to other African economies and the ongoing need for economic diversification.
  • This share reflects Nigeria’s relative position in Africa’s economy over time, showing how it moved in relation to the growth of the rest of the continent.
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  • Real estate and telecoms reinforced the growing strength of services in the Nigerian economy.
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