Nigeria has recorded one of the biggest improvements in Africa’s latest investment ranking, moving up four places to eighth position as recent economic reforms boosted its standing among investors.
The country moved ahead of Rwanda, Tanzania, Kenya and Namibia in the 2026 Bloomberg Economics Investment Risk-O-Meter, which compares the investment prospects of 19 African economies.
According to Bloomberg, Nigeria’s rise was largely linked to better performances in economic strength, fiscal strength and external vulnerability, three of the five areas measured by the ranking.
“Nigeria was the biggest climber in a ranking of Africa’s most investable markets, propelled by President Bola Tinubu’s economic reforms, according to the findings of the latest edition of An Investor’s Guide to Africa.
“The continent’s biggest oil producer and refiner rose four places to eighth in the 2026 Bloomberg Economics Investment Risk-O-Meter, overtaking Rwanda, Tanzania, Kenya and Namibia as it improved in three of the five metrics assessed by the gauge: economic strength, fiscal strength and external vulnerability,” Bloomberg reported.
The latest result places Nigeria among the countries that recorded the strongest improvement in the assessment, although the country continues to face challenges including inflation, rising living costs, public debt, infrastructure gaps and foreign exchange pressures.
Mauritius retained the top position as Africa’s most investable market. Botswana dropped two places, while South Africa, which previously occupied the top spot, fell by one position due to a weaker economic growth outlook.
Nigeria’s improved ranking comes more than three years into President Bola Tinubu’s administration, which has introduced several major economic changes aimed at reshaping the country’s fiscal and monetary systems.
Some of the major reforms include the removal of the petrol subsidy, changes to the foreign exchange market and adjustments to electricity tariffs.
The Federal Government has maintained that the measures were necessary to correct economic distortions, improve government finances and create a better environment for investment.
However, the reforms have also placed additional pressure on households and businesses, with increased costs of transportation, food and energy.
Despite the difficulties, Nigeria’s economy has maintained a growth trajectory. Real Gross Domestic Product growth increased from 2.54 per cent in the third quarter of 2023 to 3.46 per cent in the final quarter of the year.
The economy recorded average growth of 3.19 per cent in 2024 before improving to 3.85 per cent in 2025. Growth then reached 3.89 per cent in the first quarter of 2026.
The stronger economic performance has coincided with government efforts to improve revenue generation, tackle fiscal leakages and encourage investments across key sectors.
However, Nigeria’s improved position in the investment ranking comes despite a significant rise in public debt.
Figures from the Debt Management Office showed that the country’s total public debt was N87.38tn as of June 30, 2023. By December 31, 2025, it had climbed to N159.28tn.
The increase of N71.90tn represents an 82.3 per cent rise over the period and was attributed to factors including new borrowing, foreign exchange adjustments and the securitisation of some outstanding obligations.
Nigeria has historically struggled to attract enough foreign investment because of concerns around exchange-rate instability, policy uncertainty, poor infrastructure, insecurity and limited fiscal capacity.
The Tinubu administration’s reforms have attempted to address some of these issues by giving market forces a greater role in determining fuel prices, foreign exchange rates and electricity tariffs.
The currency reforms were introduced partly to address multiple exchange rates and improve transparency in the foreign exchange market, while the petrol subsidy removal was aimed at reducing the financial burden on the government.
Changes in electricity tariffs were also designed to strengthen the power sector financially and make it more attractive to investors.
Nigeria’s latest position therefore represents a significant improvement in its standing among African investment destinations, although the long-term impact of the reforms, the country’s debt level and the sustainability of economic growth remain key issues for investors to watch.
