Why Ghana Is No Match for Nigeria

Why Ghana Is No Match for Nigeria

There appears to be an attempt by some Ghanaians to compare their country to Nigeria, which I consider quite puzzling, as Ghana does not measure up. While Nigerians live in Ghana, that does not mean Ghana is a competitor to Nigeria. In fact, South Africa, Egypt, and Morocco are all superior to Nigeria in terms of standard of living, infrastructure, and more. No sensible person would dispute this. However, these three countries are not predominantly Black. In truth, no country in Africa built by Black people outshines Nigeria.

What is Ghana known for? Ghana is primarily known for Accra and, perhaps, Kumasi. In Nigeria, we have over 15 cities that rival Kumasi and more than 10 that rival Accra. Let’s look at key factors such as GDP, standard of living, economic activity, purchasing power parity, life expectancy, education, and infrastructure.

Ghana has a population of around 35 million, but it is mainly comprised of two small cities, Accra and Kumasi. The city of Kumasi has a population exceeding 2 million, reportedly more than Accra. Yet, when you account for their surrounding areas, Accra’s population increases slightly, topping that of Kumasi. Ask yourself, have you heard of any other notable cities in Ghana? Probably not, because the lesser-known cities there would not equal many of Nigeria’s smaller towns.

Ghana’s GDP is $88 billion, with a per capita income of $2,500. Despite having a population over six times smaller than Nigeria’s, one might expect Ghana’s GDP per capita to be six times higher than Nigeria’s; however, this is not the case. Additionally, Ghana is not even the second-largest economy in West Africa; that title belongs to its neighbour, Côte d’Ivoire (Ivory Coast), which has a GDP of $95 billion and a per capita income of $2,900, despite having a smaller population than Ghana. Let’s not smuggle a third country into this discussion; let’s focus on Nigeria and Ghana.

In 2023, Nigeria devalued its currency as part of the new government’s economic policy. As a result, when measured in dollars, Nigeria’s GDP fell from $440 billion to about half that, relegating it to the third- or fourth-largest economy in Africa. Nigeria enjoyed the top position in Africa for over a decade and a half. Many Nigerians residing in Ghana are middle-class. You won’t typically see them engaging in criminal activities or the negative behaviours often attributed to Nigerians. They own properties and mix their time between Ghana, Nigeria, and other countries. It is the lower-class Nigerians who migrate to Ghana in search of jobs or for trade; they represent a small fraction of the Nigerian population. Most people in Nigeria are unaware of their existence, which is why when Ghanaians talk down on Nigerians living in Ghana, most Nigerians are unfamiliar with whom they are referencing.

Middle-class Nigerians travel to Ghana to escape the hustle and bustle of life in Nigeria. They bring money, purchase properties, and contribute positively to the Ghanaian economy rather than being a burden. Regarding GDP, after the naira’s devaluation, Nigeria’s GDP stood at $250 billion, but without that devaluation, it would be $440 billion. The accurate measure of an economy is reflected in purchasing power parity (PPP), which adjusts economic output for differences in cost of living and prices between countries. Nigeria’s GDP at PPP is $1.5 trillion, while Ghana’s is just $295 billion. In fact, Nigeria’s PPP exceeds the combined PPP of the entire West African region, providing a more realistic comparison of economic size and living standards. Ghana cannot compete.

Interestingly, Lagos alone has a PPP GDP of approximately $259.75 billion, which is comparable to Ghana’s total GDP, despite Ghana having over 15 million more people. The economic performance of Lekki, one of Lagos’ many districts, rivals that of Accra. Lekki is more than three times the size of Accra and has considerably more properties. Overall, Ghana is no match for Nigeria.

Like Ghana, Nigeria has significant poverty levels. Approximately 26% of Ghana’s 35 million people live in poverty, equating to about 9.1 million individuals, while in Nigeria, the figure rises to 46%. It’s essential to acknowledge that economic inequality is prevalent in both countries. The majority of Ghana’s impoverished population lives in the North, as in Nigeria. Poverty in Southern Ghana is below 12%, meaning the North accounts for 14% of Ghana’s total population living in poverty. In contrast, Nigeria has 105 million people living in poverty, with 72% of them (approximately 75 million) located in the North. The South has about 30 million people living in poverty, which is 13% of its population.

Nigeria is a complex nation characterised by stark contrasts between the predominantly impoverished North and the relatively more affluent South. Nigeria’s economic strength primarily lies in the South, while the North contributes significantly less. The North produces more children, which disrupts Nigeria’s progress, creates unrest, and is generally seen as a burden on the country. If Nigeria were solely comprised of the South, the narrative would be entirely different. In the Human Development Index (HDI), Ghana scores 0.62, whereas Nigeria scores 0.56, resulting in a modest 0.06-point advantage for Ghana. This difference is not substantial. Additionally, in terms of life expectancy, Ghana leads with an average of 65 years, compared to Nigeria’s 56 years.

Moving on to education, Ghana has a literacy rate of 80%, while Nigeria’s is 62%. However, when comparing only the southern regions of Nigeria, the literacy rate rises to 84%, surpassing Ghana. It’s crucial to remember that the Nigerians frequently represented in the media are predominantly from the South, while those from the North often face a significantly different socioeconomic situation. The North-South divide in Nigeria is a significant phenomenon. Ghana has about thirty universities, while Nigeria boasts around 300. Of the top 50 universities in Africa, Nigerian institutions appear more than 15 times, whereas Ghanaian universities appear fewer than 5 times.

Lagos has a state-built metro system with two operational lines, the Red and Blue, and additional lines under construction. Conversely, Accra and the rest of Ghana do not have a metro system. Lagos also features a federal intercity train, the Lagos-Ibadan Light Rail System, which is unique in Ghana. Abuja has a metro system and an intercity light rail service between Abuja and Kaduna. In contrast, the intercity train between Accra and Tema is outdated, unreliable, and hardly worth mentioning.

In 2024, Foreign Direct Investment (FDI) in Ghana reached $668 million, compared to Nigeria’s $30 billion. In the first quarter of 2024, Nigeria recorded capital inflows of $6 billion. There are significantly more foreign companies in Nigeria than in Ghana, and Nigeria hosts thousands more millionaires with a net worth of over $1 million. The Nigerian middle class comprises about 10% of the population, representing over 37 million people—more than the entire population of Ghana. The purchasing power of the Nigerian middle class is substantial.

It’s vital to understand that a currency’s direct exchange rate is not necessarily an indicator of a country’s economic strength. The UK pound may be stronger against the dollar in a one-to-one comparison, but that does not mean the UK economy is superior. In every aspect, Nigeria has better infrastructure than Ghana. Therefore, the next time you hear Ghanaians making unfounded claims, consider them baseless. The Nigerians who travel to other African countries often come from lower socioeconomic backgrounds. The vast majority of Nigerians, especially those from the South, would not contemplate relocating to a neighbouring African country like Ghana for a better life.

Nigeria is not without its flaws; it faces numerous challenges. However, Ghana does not compare to Nigeria on the same level. While Nigerians should respect Ghanaian laws when visiting Ghana, Ghana should focus more on comparing itself realistically with countries like Burkina Faso, Mali, Guinea, Uganda, and Cameroon.

Here are seven areas where Nigeria clearly outshines Ghana:

1. Population and Market Size

Nigeria’s population is over 230 million, compared to Ghana’s roughly 33 million. This means that Nigeria’s population is almost seven times that of Ghana’s, making it Africa’s biggest market for goods, entertainment, and investment. A larger population results in a more extensive workforce, a greater number of consumers, and a stronger cultural presence.

2. Economic Power

With a GDP exceeding $450 billion (as of 2023), Nigeria boasts the largest economy in Africa, while Ghana’s GDP hovers around $75 billion. Nigeria’s significant sectors, such as oil and gas, telecommunications, fintech, and entertainment, grant it considerable regional and global economic influence. Notably, Lagos has an economy larger than Ghana’s entire GDP, providing Nigeria with greater bargaining power in trade and politics.

3. Global Influence

Nigeria possesses substantial diplomatic and geopolitical clout, both in Africa and globally. It is a founding member of the African Union and ECOWAS, and it has played a vital role in peacekeeping missions across the continent. Nigerian citizens hold leadership positions in international organisations, and Nigeria’s stance often shapes policies in West Africa.

4. Cultural and Creative Dominance

Nollywood is one of the world’s largest film industries, with global streaming deals and significant influence. Nigerian music genres, such as Afrobeats, Highlife, and Afro-fusion, have gained international recognition, leading to the emergence of superstars like Burna Boy, Wizkid, Davido, and Tems. While Ghana also has global stars (such as Sarkodie, Stonebwoy, and Shatta Wale), Nigeria’s music industry is larger, more commercialised, and has greater international influence.

5. 5. Technological and Business Innovation

Nigeria leads Africa in tech startups, particularly in fintech, with companies like Flutterwave, Paystack, and Interswitch, all valued in the hundreds of millions. Lagos and Abuja serve as innovation hubs, attracting global investors. Although Ghana’s tech scene is growing—especially in Accra—Nigeria’s scale and access to capital give it a dominant position.

6. Military and Regional Power

Nigeria has one of the strongest militaries in Africa and has historically led ECOWAS interventions, such as in Liberia, Sierra Leone, and The Gambia. While Ghana’s professional army is respected for its peacekeeping efforts, Nigeria’s sheer military capacity and larger defence budget make it a regional power.

7. Sports and Entertainment

Nigeria’s achievements in football, athletics, and entertainment awards are significantly superior. This country has won the African Cup of Nations (AFCON) three times and produced numerous global football stars. Although Ghana also has accomplished athletes and teams, Nigeria’s larger talent pool gives it an advantage in consistency and depth.

Watch the excerpt on why Nigeria outshines Ghana: https://www.youtube.com/watch?v=l8R3OuZCWx8

By Ikechukwu ORJI