According to Trading Economics global macro models and analysts, Nigeria’s GDP per capita is anticipated to reach 2360.00 USD by the end of 2021. According to our econometric models, Nigeria’s GDP per capita will trend around 2400.00 USD in 2022 and 2500.00 USD in 2023 in the long run.
What will Nigeria’s per capita income be in 2020?
Nigeria’s GDP per capita was 2,083 US dollars in 2020. Nigeria’s GDP per capita climbed from 583 dollars in 2001 to 2,083 dollars in 2020, expanding at a 7.96 percent yearly pace.
Is Nigeria’s per capita income low?
Nigeria has the largest economy in Africa, with a $400 billion economy. However, because of gross income inequality and poor wealth distribution, many Nigerians do not benefit from this wealth, with approximately 100 million people living in poverty.
Meanwhile, Nigeria’s population of 200 million people makes it not just Africa’s most populated country, but also the world’s seventh most populous. Furthermore, between the ages of 16 and 64, 53% of the population. When you consider Nigeria’s economy in relation to its people, it’s evident that the country is falling short. Nigeria, for example, is ranked 28th in terms of GDP, but 142nd in terms of GDP per capita.
What does Nigeria’s population compare to that of other countries with similar populations? Only Pakistan ($305 billion) and Bangladesh ($250 billion) have a lower GDP than Nigeria among the top eight most populous countries. These two countries, like India, have a lower GDP per capita. In these three countries, however, economic growth is substantially higher: the International Monetary Fund (IMF) anticipates average growth of 2.7 percent, 7.0 percent, and 7.6 percent for the next five years for Pakistan, Bangladesh, and India, respectively. Nigeria is expected to increase at a rate of 2.5 percent over the same time period, according to the IMF.
As a result, Nigeria’s GDP per capita is low, and the country’s economy is rising at a considerably slower pace than its peers. Even countries with weaker growth rates, such as Brazil and Russia, have economies that are at least four times larger than Nigeria’s.
Despite the fact that elementary education is free under some rules, 13 million Nigerian children remain out of school, the largest number in the world. Many of them labor in Nigeria’s underground economy as street hawkers, domestic workers, or just beg. This puts Nigeria in a double bind: the current economic contribution of this group is unaccounted for, as is the future opportunity cost of the lack of skilled labor.
Nigeria’s failure to realize its population’s economic potential can also be related to a lack of university education. Only two Nigerian institutions are among the top 1000 universities in the world. Nigerians spend a fortune in nations like the United States, Canada, and Australia as a result of this. In the year 2018, Canada received about 11,000 Nigerian students.
A new group of Nigerians is now emigrating: skilled workers. Between 2016 and 2017, the number of Nigerians allowed to Canada under the Express entry program climbed from 98 to 1036, indicating that it is a popular destination. Furthermore, while only 42,000 Canadian immigrants are of Nigerian descent (7 percent of the overall African population and fifth in Africa), 17,000 recent immigrants are of Nigerian descent (11 percent of the total), making Nigeria the top African country. Nigeria’s ongoing socioeconomic insecurity and instability predict that this tendency will continue in the future years.
To begin, legislative and administrative obstacles must be removed. Economic measures that promote employment creation are critical to boosting economic growth. The current unemployment rate is 23.1 percent, making it the tenth highest in the world.
The informal economy, through what can be termed as ‘active regulation’ rather than prescription, could be rich terrain. Instead of outlawing street trade or hawking, for example, the economic practice should be controlled in such a way that individuals of working age can engage in the activity as a legitimate source of revenue that is appropriately taxed by the government.
At the local and state government level, street trading monitoring bodies could be established, allowing street traders and hawkers to obtain licenses and permits to sell their wares, subject to compliance with standards set by agencies such as the National Agency for Food and Drug Administration Control (NAFDAC).
Domestic workers’ services should be controlled, and their earnings should be taxed properly by the government. Domestic service is already recognized as a job category in Nigeria by the Labour Act of 2015. Domestic labor recruitment and the nature of work performed in this capacity can be regulated by subsidiary organizations established at various levels of government.
While effective monitoring and control of these sectors is definitely difficult, establishing such groups at the very least provides some government oversight and allows for the collection of relevant data about the informal economy.
The importance of infrastructure
It’s a topic that’s been discussed extensively, yet no economic growth strategy will be truly successful unless our infrastructure is upgraded. Nigeria’s present power generation capacity of 12,000MW is insufficient to meet the country’s future needs. It only generates 4,000MW of this, putting more than half of the population in constant darkness.
High operational expenses due to dependency on imported diesel, poor productivity (especially in rural regions), and so on are all ramifications of the power situation. Despite the possibility of renewable energy solutions such as solar panels in a country so near to the equator, medium-term economic and demographic realities demand a more centralised power supply.
Selling to the world
Despite past governments’ grandiose promises of economic diversification, oil and gas continue to account for 90 percent of Nigeria’s exports. Furthermore, Nigeria continues to rely significantly on oil imports due to under-capacity domestic refineries. Diversification-focused export policies will relieve some of the strain on the oil and gas sector to earn export profits.
There has been considerable discussion about putting a greater emphasis on agriculture as a means of economic growth rather than oil extraction. To maximize any potential in this area, however, crucial infrastructure development is still required. The sector is currently beset by issues such as an out-of-date land tenure system, high farm input costs, and limited access to loans, with Nigeria reportedly losing over $10 billion yearly as a result of lower productivity.
These issues will not be remedied overnight, but government policies can be aimed at providing interest-free loans, subsidizing the purchase of irrigation development materials, and ensuring farmers’ land tenure security. Providing farmers, particularly those in rural areas, with functional transportation networks that allow for increased market access would further aid production and output.
More importantly, little economic development will take place in an environment of insecurity, as illustrated by the Northern states’ low internally generated revenue. Ending the war in North-East Nigeria and other volatile areas must be prioritized, especially to reduce the economic pressure on the more prosperous states, which are rapidly becoming overcrowded.
Nigeria may be Africa’s largest economy, yet despite its vast human resource base, it continues to underachieve. Its problems with human resource maximisation have endured across administrations, and human resource maximisation will remain a mirage until concrete actions are done to address these challenges.
How much of Nigeria’s GDP is contributed by Lagos?
Lagos State is vital to the Nigerian economy, and as the country’s commercial nerve center, it continues to be the center of economic activity. Lagos’ GDP accounted for 26.7 percent of Nigeria’s total GDP and more than half of the country’s non-oil GDP. Lagos is home to more than half of Nigeria’s non-oil industrial capacity.
Lagos is also Nigeria’s financial center, with all of the country’s major banks headquartered there.
The Nigerian Stock Exchange is also located there. It accounts for more than 80% of Nigeria’s foreign trade flows and earns more than half of the country’s port profits. The Lagos Bureau of Statistics assessed Lagos’ GDP at N27.125 trillion in 2016, and it is predicted to rise to N628 trillion by 2018, with an average yearly growth rate of 4.2 percent. Despite the rebasing of Ghana’s GDP, the Lagos economy, with an estimated population of 24 million people, is larger than any other in the ECOWAS sub-region.
Lagos’ diverse economy is the major contributor to Nigeria’s GDP, thanks to public-private investments and a population of over 24 million people. The local economy is predicted to grow by 10% as the state seeks to expand the tax base and enhance collection methods to boost Local Tax Receipts to at least NGN360 billion by 2017, up from N200 billion in 2012, moving closer to 80% of yearly revenues from 70% in the late 2000s.
Lagos State remains Nigeria’s and the ECOWAS’ economic, financial, and commercial nerve center. Lagos State is the ECOWAS economic hub and the springboard for innovation and prosperity in Nigeria and Sub-Saharan Africa, with a Gross National Product three times that of any West African country.
- Murtala Mohammed International Airport, Ikeja is Nigeria’s busiest international/regional aviation hub.
- 70 percent of the country’s total industrial investment and 65 percent of its commercial operations are concentrated in this region.
- Internally Generated Revenue accounts for more than 60% of the state’s annual budget, which is heavily skewed in favor of capital spending.
What is the GDP per capita in Lagos?
Gross Domestic Product (GDP) per capita in Los Lagos Los Lagos had a GDP per capita of 2,863.22 thousand pesos in 2011. Los Lagos’ GDP per capita grew at an annual rate of 4.00 percent from 2,653.01 thousand pesos in 2009 to 2,863.22 thousand pesos in 2011.
What is the average pay in Nigeria?
From 2015 to 2018, the Living Wage Individual in Nigeria averaged 42500 NGN/Month, with a high of 43200 NGN/Month in 2018 and a low of 41800 NGN/Month in 2015. Individual Living Wage in Nigeria – current numbers, historical data, and graphs – was last updated in April of 2022.
What are the different economic sectors in Nigeria?
Nigeria’s economy is dominated by the agricultural sector (25.08 percent of GDP), the trade sector (16.86 percent of GDP), and the real estate sector (6.85 percent). The Financial Services, Communications, and Entertainment industries all saw significant growth.
Why is Tajikistan so impoverished?
Tajikistan is located in Central Asia, between Afghanistan, China, Kyrgyzstan, and Uzbekistan, and is surrounded by a vast mountain range. Major oil and natural gas deposits have been discovered in Tajikistan in the last decade, rekindling hopes of reviving the country’s ailing economy and returning economic power to the Tajiks. Tajikistan had roughly 27.4 percent of its population living below the national poverty threshold as of 2018. The following are ten statistics about poverty in Tajikistan:
facts about poverty in Tajikistan
- Not all parts of the country are affected by poverty in the same way. In 2018, the poverty rate in Sugd’s northwest region was 17.5 percent. The Districts of Republican Subordination, just below, had a percentage of almost double that, at 33.2 percent.
- Poverty appears to be more acute in rural Tajikistan than in metropolitan areas. Cotton farming, one of Tajikistan’s principal cash crops, has been demonstrated to do little to reduce poverty levels or lift people out of poverty. Those with non-agricultural occupations in metropolitan regions like as Dushanbe, the capital, might move to Russia to find work. This happens frequently. In 2018, the poverty rate in urban Tajikistan was at 21.5 percent, while rural Tajikistan had a rate of 30.2 percent.
- In Tajikistan, the rate of poverty alleviation has slowed. Poverty rates fell from 83 percent to 31 percent between 2000 and 2015. Since 2014, the annual decrease in the national poverty rate has slowed to 1%.
- The lack of job creation and stagnant pay growth are to blame for the declining rate of poverty alleviation. Due to a lack of new and better opportunities to stimulate the economy, a large portion of the workforce seeks work in Russia, which does little to help Tajikistan’s economy.
- According to reports, 75% of households are concerned about covering their family’s basic needs in the coming year. Tajikistan is the poorest and most remote of the former Soviet Union’s sovereign states. More than 95 percent of households failed to meet the minimal level of food consumption to be considered appropriately sustained, according to the first nationally conducted study since the war ended and Tajikistan attained independence.
- Tajikistan has a high rate of stunting and malnutrition among children, which has been linked to insufficient access to clean water and food. Many families spend more money on drinking water than they can afford. For the 64 percent of Tajiks who live below the national poverty line, this means suffering additional costs on top of a daily income of less than $2.
- There are just 163 places to dwell for every 1000 people. With 1.23 million dwelling units, Tajikistan has the smallest housing stock in Europe and Central Asia. This is largely due to the government’s inability to offer public housing, while private owners lack the financial means to invest in or maintain their houses.
- Tajikistan’s population is 35 percent under the age of 15. This percentage is around 17% among the world’s wealthiest countries. A large number of young people in the population means more difficulties for the rising workforce as they try to make ends meet, especially in a place where the economy may not be able to respond. This might exacerbate Tajikistan’s economic stagnation, with disgruntled young workers fleeing to other countries, as many are already doing.
- It’s possible that up to 40% of Tajiks in Russia are working illegally. Tajikistan is reliant on Russian remittances. This is in addition to Russia’s increasingly stringent administrative procedures for foreign workers. Because of these two factors, the Russian Ministry of Internal Affairs’ estimate of one million Tajiks working in Russia per year is suspect. In Tajikistan, between 30 and 40 percent of households have at least one family member working overseas.
- As of 2015, Tajikistan had a literacy rate of 99.8%. Primary education is compulsory, and literacy is strong, albeit young people’s skill levels are declining. This is due to economic needs driving young people away from their education in pursuit of a source of income to help them meet their basic necessities.
Since attaining independence in 1991, Tajikistan has been working its way out of poverty. The country’s over-reliance on remittances, on the other hand, has caused its economy to stagnate. As a result, there is a hungry workforce and a scarcity of jobs to feed them. Gurdofarid is a non-profit organization that aims to empower Tajik women by teaching them the skills they need to find work in their own nation.