..why Nigeria was Never Considered for the ranking
No African country ranked among the World’s 25 richest countries per GPD per capita. Nigeria and South Africa, two leading economies on the African continent are conspicuously absent in the ranking presented by Visual Capitalist
Visual Capitalist, analyzing 2023 per capita GDP numbers from the International Monetary Fund showed that the richest countries in the world are, Luxemburg which is ranked the richest country in the world with a GDP per capita of over $128.8k. However, this is relative to the country’s small population of 640K.
It is followed by Ireland with a GDP per capita of 107.0k and Switzerland with GDP per capital of 94.8k which are ranked second and third richest countries respectively in the world.
Other countries that fall into this group are Qatar with GDP per capita of 89.4k ranked (4), Norway 88.8k (5), Singapore 84.5k (6), U.S with GDP per capita of 78.4k (7), Iceland 78.0k (8)
However, the richest continent in the world is North America which comprises of U.S. Canada, and Mexico, just to mention a few.
The ranking of countries GDP capita is determined by the total GDP (Gross Domestic Product) of a country divided by it population. Several other factors contribute to why no Africa country is currently ranked among the world’s 25 richest countries by GDP per capita, some of the reasons include: economic development, resource dependency, population growth, and human development indicators.
Many African countries face challenges in terms of economic development. Historically, several African nations have experienced colonization, which had long-lasting effects on their economies. Issues such as political instability, corruption, inadequate infrastructure, and limited access to education and healthcare have hindered economic growth
Some African countries heavily rely on the export of raw materials, such as oil, minerals, and agricultural products. These commodities often face price fluctuations in the global market, making their economies vulnerable to external
These commodities often face price fluctuations in the global market, making their economies vulnerable to external shocks. Overreliance on a single industry can hinder economic diversification and lead to income inequality.
African countries have experienced rapid population growth in recent decades. While population growth can be a positive factor for economic development, it can also strain resources and infrastructure, making it more challenging to provide adequate services and opportunities for all its citizens
In terms of human development indicators, African countries often face significant challenges in human development, including high levels of poverty, low literacy rates, limited access to healthcare, and inadequate infrastructure. These factors can impact economic productivity and overall GDP per capita
Coming to the reasons why Nigeria was never included, Its population is one of the factors why is not ranked among the 25 richest countries of the world. The country’s significant population, which put pressure on resources affects the calculation of the GDP per GDP, when divided by large population, the per capita income is lower compared tp countries with smaller populations
Also, income inequality is experienced by Nigerians because of a significant portion of its population are living below the poverty line. While the country has a notable GDP, the benefits of economic growth are not evenly distributed among the population. This disparity impacts the average income and keeps Nigeria’s GDP per capita lower compared to countries with a more equitable income distribution
Nigeria’s economy heavily relies on oil exports, which are subject to price volatility in the global market. Fluctuations in oil prices have a direct impact on Nigeria’s revenue and overall economic performance
Fluctuations in oil prices have a direct impact on Nigeria’s revenue and overall economic performance. This dependence on a single commodity makes the country’s economy vulnerable and can hinder GDP per capita growth.
Influenced by various factors and they do not necessarily overall development or potential of a country. Nigeria, like many other countries, is working towards addressing these challenges and implementing reforms to foster sustainable economic growth and improve the living standards of its citizens
Economic Mismanagement and Corruption: Nigeria has faced issues of corruption and economic mismanagement in the past, which have hindered economic growth and development.
These factors contribute to a lack of Investor confidence, reduced foreign direct investment, and hindered efforts to improve per capita.
