Aim/purpose – The benefit of changing the population age structure only accrues to
an economy if the labor market absorbs the increasing number of the working population
at a given labor income that surpasses the prevailing consumption of that age group. However,
the prevailing conditions in Nigeria suggest that consumers outweigh producers amidst the
increasing working-age share of the population. While the demographic dividend has been
established in some advanced countries, the same cannot be said in Nigeria. Thus, this study
uses annual data projections by the United Nations to examine the interplay between con-
sumption, labor income, and the economic support ratio in Nigeria between 2001 and 2050.
Design/methodology/approach – The study is anchored on the National Transfer Accounts
(NTA) modeling approach. The study used annual population data projections from the Unit-
ed Nations. Age profiles for private-public consumption and labor income data were sourced
from the 2018/2019 National Living Standard Survey (NLSS) produced by the Nigerian
National Bureau of Statistics. The paper employed the NTA approach to analyze Nigeria’s
life cycle deficit and economic support ratio.
Findings – Nigeria’s demographic window of opportunity began in 2001 and will last till
2050. Lifecycle surplus exists among the effective producers for 28 years. Also, individuals
in Nigeria enjoy financial autonomy from the age of 35 to 63. During the surplus window,
individuals’ labor earnings are more than consumption.
Research implications/limitations – Nigeria experiences a lifecycle deficit (LCD) between
ages 0 and 14 that extends to the early ages of effective production (15 to 34). The country
has a weak take-off point of demographic dividend along the transition path.
Originality/value/contribution – The study analyzed the composition of age structure, the
effects of changes in the population structure of Nigeria, the flow of resources across age
groups, and its implications. Relying on the NTA framework, this study attempts to forecast
economic growth in Nigeria up to 2050.
Keywords: National Transfer Accounts, demographic dividend, lifecycle deficit, economic
support ratio, Nigeria.
JEL Classification: J11, O47.