Nigeria’s GDP Crash Pushes 65 Million into Poverty

Nigeria’s economy took a major hit in 2024 as the country’s GDP per capita dropped by 66 percent, forcing more than 65 million Nigerians into poverty. This was revealed in a new report released by Quartus Economics.

The report, titled “Forty Years of Structural Adjustment: Is Africa’s Eagle Stuck or Soaring Back to Life?”, examined how Nigeria’s economy has evolved since the introduction of the Structural Adjustment Programme (SAP) in 1986 a policy meant to reduce government control and promote market-driven growth.

According to Quartus, Nigeria’s GDP grew from $87.5 billion in 1990 to $252 billion in 2024, but the country’s economic foundation remained “fragile.” During the same period, the naira lost 99.7 percent of its value, eroding much of the gains made through earlier reforms.

While liberalisation and privatisation in the 1990s helped attract investment and boost manufacturing, weak policy implementation and repeated reversals reversed most of those gains.

“Policy inconsistencies and poor execution created a cycle of mixed results and missed opportunities,” the report noted. “Inclusive, export-led growth has remained out of reach, as population growth far outpaced productivity.”

By 2024, Nigeria’s GDP per person had fallen sharply from its 2014 peak, deepening poverty and exposing the economy’s long-standing weaknesses.

Quartus linked this decline to multiple factors collapsing oil prices, population pressure, restrictive fiscal policies, and governance lapses which together triggered the worst growth slowdown in a generation. Inflation soared past 30 percent, foreign investment dwindled, and the economy stagnated.

However, the report acknowledged that reforms introduced between 2023 and 2024, such as the removal of fuel and foreign exchange subsidies, were “bold moves” that began to correct some of these structural problems.

Although these measures initially worsened inflation, they helped rebuild investor confidence and fiscal stability. By the end of 2024, GDP growth rebounded to nearly 4 percent, with the manufacturing and mining sectors showing renewed life.

By October 2025, Nigeria’s foreign reserves rose to $42 billion, while inflation began to ease slightly — signs of what Quartus described as “a slow but genuine restoration of confidence.”

Still, the firm warned that “the scars of Nigeria’s lost decade linger.” Per capita income remains far below previous levels, and inefficiencies persist in governance and export systems.

Quartus concluded that Nigeria’s future growth depends on deep structural transformation, not just short-term fixes — with a focus on productivity, innovation, and responsible leadership.

“At the moment, Nigeria, the African eagle, is unstuck but not yet soaring,” the report stated. “Recovery is real, but lasting transformation requires discipline, consistency, and collective commitment.”