Nigeria leads Africa investability gains
Nigeria Rises in Investment Rankings, Surpassing Key African Economies
By Yinka Kolawole
Nigeria has been recognized as the largest climber among major African economies in Bloomberg Economics’ 2026 Investment Risk-O-Meter, improving four positions to secure eighth place. This advancement is attributed to enhanced economic and fiscal fundamentals, according to the latest report released on Tuesday.
The Investment Risk-O-Meter evaluates the relative investability of 19 African economies, with Mauritius ranking first. Nigeria’s rise places it ahead of Rwanda, Tanzania, Kenya, and Namibia.
Bloomberg indicated that Nigeria’s improved standing is a result of gains in three of the five metrics used in the assessment: economic strength, fiscal strength, and external vulnerability.
As Africa’s leading oil producer and refiner, Nigeria’s advancement comes amid ongoing economic reforms initiated by the Federal Government. These reforms aim to address long-standing issues related to fiscal management, currency exchange, and the power sector.
The country’s improved position follows various policy changes enacted since President Bola Tinubu took office in 2023. Notable reforms include the elimination of the petrol subsidy, the liberalization of the foreign exchange market, and the implementation of electricity tariffs designed to mitigate losses in the power sector.
While these reforms have led to increased costs and pressure on businesses and households in the short term, they are gradually being perceived by investors as steps toward achieving macroeconomic stability and enhancing the investment climate.
In contrast, some other major African economies have experienced declines in their rankings. Botswana has fallen two places, and South Africa, which held the top position last year, dropped one spot due in part to a diminished economic growth outlook.
Mauritius continues to lead in relative investability among the economies assessed, demonstrating its robustness across key investment-risk indicators.
Nigeria’s latest ranking signifies a notable improvement in its investment position within the continent. Investors may gain confidence if the momentum of reform persists, leading to stronger growth, improved fiscal conditions, and greater macroeconomic stability.
