Total changes 1990-2008
Inclusive Wealth Index
Gross Domestic Product
Changes over 20 Years
The negative changes in IWI in Nigeria indicate an unsustainable track. Furthermore, Nigeria was one of the few countries that saw a decrease in produced capital in addition to a decrease in natural capital. The significant discrepancy between IWI and GDP growth indicates that GDP growth may not be sustainable. This discrepancy can be attributed to the fact that Nigeria is depleting its natural capital, specifically their oil reserves, but not increasing their produced or human capital bases fast enough to ensure positive growth in inclusive wealth. Additionally, rapid population growth has further exacerbated the situation, resulting in a lower rate of return of its capital asset base per person.
Natural capital makes up the large majority of Nigeria’s inclusive wealth, followed by human and produced capital.
Nigeria is amongst the countries with the highest stock of natural capital, driven primarily by fossil fuels. However, the rapid depletion of its oil reserves is the primary reason for Nigeria’s negative IWI rating. In conjunction with its high population growth rate, it is crucial that Nigeria improves its inclusive investments in produced and human capital if it intends to move on to a more sustainable track.