Despite its large population and the capacity to produce millions of barrels of oil per day, Nigeria is at risk of losing its status as Africa’s largest economy.
According to the latest IMF projections, Nigeria’s GDP was $476.50 billion in 2023 but is expected to drop by 58.08% to $199.72 billion in 2024. This decline could push Nigeria down from the top position to fourth place in Africa, behind South Africa, Egypt, and Algeria.
This drop is not due to an economic slowdown but rather to the continuous devaluation of the local currency, the naira, against the dollar. Following devaluations initiated by the Nigerian government, 1 dollar, which was worth 447.58 nairas at the beginning of 2023, rose to 898 nairas in 2024 and has now reached 1,645 nairas. This sharp depreciation has led to a significant drop in GDP when calculated in dollars.
Despite economic growth, this development, linked to currency instability and the depreciation of the naira, makes it difficult for Nigeria to maintain its position in the global rankings.
