Nigeria has recorded one of the biggest improvements in Africa’s latest investment risk ranking, moving four places to eighth position as reforms under President Bola Tinubu strengthened the country’s standing among 19 African investment destinations.
The ranking, published in the 2026 Bloomberg Economics Investment Risk-O-Meter, saw Nigeria move ahead of Rwanda, Tanzania, Kenya and Namibia. Mauritius retained the top position, while South Africa slipped from first place in the previous edition.
Nigeria’s rise was supported by improved scores in three of the five areas assessed by Bloomberg, covering economic strength, fiscal strength and external vulnerability. Brandspur Banking News Desk reports that the improvement comes despite continuing concerns over inflation, living costs, public debt, infrastructure gaps and foreign exchange pressures.
The ranking provides a positive assessment of Nigeria’s relative investment position after more than three years of major economic changes by the Tinubu administration. Among the most consequential have been the removal of the petrol subsidy, changes to the foreign exchange market and electricity tariff reforms.
The government has maintained that the measures were necessary to correct longstanding economic distortions, improve public finances and create conditions capable of attracting investment. For households and businesses, however, the adjustment has brought significant pressure through higher transport, food and energy costs.
Economic growth has nevertheless strengthened over the period covered by the assessment. Real Gross Domestic Product grew from 2.54 per cent in the third quarter of 2023 to 3.46 per cent in the final quarter of that year.
Growth averaged 3.19 per cent in 2024 before rising to 3.85 per cent in 2025, marking the strongest annual performance within the period. The economy expanded by 3.89 per cent in the first quarter of 2026, taking average quarterly growth between the third quarter of 2023 and the first quarter of 2026 to about 3.46 per cent.
The stronger performance has coincided with efforts to increase government revenue, reduce fiscal leakages and attract capital into key sectors.
Yet the improvement in Nigeria’s investment ranking has occurred alongside a substantial increase in public debt. Data from the Debt Management Office showed that total public debt stood at N87.38tn as of June 30, 2023. By December 31, 2025, it had risen to N159.28tn.
That represents an increase of N71.90tn, or approximately 82.3 per cent, over two and a half years. The DMO attributed the rise to new borrowing, foreign exchange adjustments and the securitisation of certain legacy obligations.
For investors, Nigeria’s improved ranking comes against a longstanding backdrop of challenges including currency instability, policy uncertainty, inadequate infrastructure, insecurity and limited fiscal space.
The foreign exchange reforms have sought to reduce multiple exchange rates and make currency trading more transparent, while the petrol subsidy removal was designed to reduce the government’s fiscal burden. Electricity tariff changes were similarly intended to improve the financial sustainability of the power sector and encourage investment by bringing some tariffs closer to supply costs.
Nigeria’s latest position therefore reflects a stronger relative showing among African markets, while the country’s ability to sustain the gains will remain closely tied to economic growth, fiscal management, debt sustainability and the continued implementation of its reforms.
