By Nse Anthony-Uko
(Sundiata Post) — Value of the average Nigerian dropped by $365 each in 2017 as the Gross Domestic Product (GDP) Per Capita fell to $2,092 in 2017 down from $2,457 a year earlier, indicating a poorer population.
Per capita GDP is a measure of the total output of a country that takes gross domestic product (GDP) and divides it by the number of people in the country, according to Investopedia. A rise in per capita GDP signals growth in the economy and tends to reflect an increase in productivity,
According to the GDP Per Capita Data of countries published by the International Monetary Fund (IMF) Nigeria’s is 139th out of 185 countries captured thus the 46th lowest in the world compared to Botswana with Per capita GDP of $7,673; or Gabon and South Africa with per capita income of $7,583 and $6,089 respectively.
Angola, Algeria, Tunisia and Cape Verde have per capita income of $4,401, $4,225, $3,513 and $3,212 respectively.
Nigeria is only higher in Africa than much smaller countries like Congo with per capita income of $1,793; Kenya $1,677 and Ghana $1,607.
IMF in its report on Wednesday had said Nigerians are getting poorer and that “coherent and comprehensive” economic reforms are urgently needed in the country.
The Bretton Wood institution said it expects the government to “muddle through” in the medium term, and any progress could also be threatened if elections next year consume political energy and resources.
Reuters reports that the IMF said that although the outlook for growth has improved, the climate still remained challenging.
“Comprehensive and coherent economic policies remain urgent and must not be delayed by approaching elections and recovering oil prices,” IMF said in its annual Article IV review of Nigeria’s economy.
“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita.
“Further delays in policy action — including because of pre-election pressures — can only make the inevitable adjustment more difficult and costlier.”
The lender reiterated that Nigeria needs to simplify its complex foreign exchange system.
“Moving towards a unified exchange rate should be pursued as soon as possible. (IMF) staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.”
It also said that the Central Bank of Nigeria (CBN) should stop its intervention activities in the foreign exchange market.
The CBN has been injecting money into the forex market to ease the pressure on the naira.
By Nse Anthony-Uko
(Sundiata Post) — Value of the average Nigerian dropped by $365 each in 2017 as the Gross Domestic Product (GDP) Per Capita fell to $2,092 in 2017 down from $2,457 a year earlier, indicating a poorer population.
Per capita GDP is a measure of the total output of a country that takes gross domestic product (GDP) and divides it by the number of people in the country, according to Investopedia. A rise in per capita GDP signals growth in the economy and tends to reflect an increase in productivity,
According to the GDP Per Capita Data of countries published by the International Monetary Fund (IMF) Nigeria’s is 139th out of 185 countries captured thus the 46th lowest in the world compared to Botswana with Per capita GDP of $7,673; or Gabon and South Africa with per capita income of $7,583 and $6,089 respectively.
Angola, Algeria, Tunisia and Cape Verde have per capita income of $4,401, $4,225, $3,513 and $3,212 respectively.
Nigeria is only higher in Africa than much smaller countries like Congo with per capita income of $1,793; Kenya $1,677 and Ghana $1,607.
IMF in its report on Wednesday had said Nigerians are getting poorer and that “coherent and comprehensive” economic reforms are urgently needed in the country.
The Bretton Wood institution said it expects the government to “muddle through” in the medium term, and any progress could also be threatened if elections next year consume political energy and resources.
Reuters reports that the IMF said that although the outlook for growth has improved, the climate still remained challenging.
“Comprehensive and coherent economic policies remain urgent and must not be delayed by approaching elections and recovering oil prices,” IMF said in its annual Article IV review of Nigeria’s economy.
“Higher oil prices would support a recovery in 2018 but a ‘muddle-through’ outlook is projected for the medium term under current policies, with fiscal dominance and structural constraints leading to continuing falls in real GDP per capita.
“Further delays in policy action — including because of pre-election pressures — can only make the inevitable adjustment more difficult and costlier.”
The lender reiterated that Nigeria needs to simplify its complex foreign exchange system.
“Moving towards a unified exchange rate should be pursued as soon as possible. (IMF) staff does not support the exchange measures that have given rise to the exchange restrictions and multiple currency practices.”
It also said that the Central Bank of Nigeria (CBN) should stop its intervention activities in the foreign exchange market.
The CBN has been injecting money into the forex market to ease the pressure on the naira.