Over 65 Million Nigerians Fall into Poverty as Average Income Drops Two-Thirds in 2024

Nigeria’s economy suffered a major setback in 2024 as its GDP per capita plunged by 66 percent, pushing more than 65 million people into poverty, according to a new report by Quartus Economics.

The report, titled “Forty Years of Structural Adjustment: Is Africa’s Eagle Stuck or Soaring Back to Life?”, traces Nigeria’s economic path since the introduction of the Structural Adjustment Programme (SAP) in 1986—a policy meant to liberalise the economy and reduce state control. While the reforms initially spurred growth, the report found that decades of inconsistent implementation left the country’s economic foundations “fragile.”

Quartus noted that Nigeria’s GDP grew from $87.5 billion in 1990 to $252 billion in 2024, but the naira lost 99.7 percent of its value during the same period. Early liberalisation, privatisation, and banking reforms attracted private investment and strengthened manufacturing, yet policy reversals and weak governance undermined those gains.

“Policy inconsistencies and weak implementation led to a recurring cycle of mixed results and missed opportunities,” the report stated, adding that population growth continued to outpace productivity. By 2024, per capita income had fallen to one-third of its 2014 level, deepening poverty and exposing the economy’s vulnerabilities.

Between 2014 and 2023, Nigeria endured its slowest economic growth in decades, driven by oil price collapses, population pressures, restrictive fiscal and monetary policies, and governance lapses. Inflation surged beyond 30 percent while foreign investment dried up.

The report acknowledged, however, that recent reforms—particularly the removal of petrol and foreign exchange subsidies in 2023 and 2024—were “decisive measures” that began to correct structural distortions. Though these policies initially fuelled inflation, Quartus said they restored fiscal stability and boosted investor confidence. By the end of 2024, GDP growth had rebounded to nearly 4 percent, with renewed activity in manufacturing and mining helping the economy expand faster than the population.

By October 2025, foreign reserves had climbed to $42 billion, and inflation had begun to ease slightly, signalling what Quartus described as “a slow but genuine restoration of confidence.”

Despite these signs of recovery, the firm cautioned that “the scars of Nigeria’s lost decade linger.” Per capita income remains well below pre-crisis levels, and deep inefficiencies persist in exports and governance.

“Nigeria, the African eagle, is unstuck—but it has not yet started to soar,” the report concluded. “The recovery is real, but lasting transformation will depend on discipline, continuity, and collective commitment to reform.”