Nigeria has climbed four places to eighth in the latest Bloomberg Economics Investment Risk-O-Meter, emerging as the biggest climber among 19 African economies assessed in the 2026 ranking.
The improvement saw Nigeria overtake Rwanda, Tanzania, Kenya and Namibia, with Bloomberg attributing the country’s stronger position partly to economic reforms implemented under President Bola Tinubu.
In its latest edition of An Investor’s Guide to Africa, Bloomberg said Nigeria improved in three of the five indicators used to assess investment risk — economic strength, fiscal strength and external vulnerability.
“Nigeria was the biggest climber in a ranking of Africa’s most investable markets, propelled by President Bola Tinubu’s economic reforms,” Bloomberg reported.
Mauritius ranked as Africa’s most investable market, while South Africa, which topped the previous ranking, dropped one place amid a weaker economic growth outlook. Botswana also fell two places.
Nigeria’s improved ranking comes amid reforms to the country’s fiscal and monetary environment, including the removal of the petrol subsidy, changes to the foreign exchange market and electricity tariff reforms.
The Federal Government has defended the measures as necessary to address economic distortions, strengthen public finances and create conditions for increased investment.
However, the reforms have also triggered higher costs for households and businesses, particularly in transportation, food and energy.
Despite the economic pressures, Nigeria’s real Gross Domestic Product growth has strengthened during the period covered by the assessment.
GDP growth increased from 2.54 per cent in the third quarter of 2023 to 3.46 per cent in the fourth quarter of the year. The economy grew by an average of 3.19 per cent in 2024 before accelerating to 3.85 per cent in 2025.
Growth stood at 3.89 per cent in the first quarter of 2026, bringing average quarterly growth between the third quarter of 2023 and the first quarter of 2026 to about 3.46 per cent.
The improved investment ranking, however, comes alongside a sharp rise in Nigeria’s public debt.
Data from the Debt Management Office showed that total public debt rose from N87.38tn as of June 30, 2023, to N159.28tn by December 31, 2025.
The increase of N71.90tn represents an 82.3 per cent rise in two and a half years. The DMO attributed the increase to new borrowing, foreign exchange adjustments and the securitisation of certain legacy obligations.
Nigeria has historically faced challenges in attracting foreign capital due to exchange-rate instability, policy uncertainty, infrastructure gaps, insecurity and limited fiscal space.
The reforms introduced by the Tinubu administration have sought to address some of these concerns by giving market forces a greater role in determining fuel prices, foreign exchange rates and electricity tariffs.
The foreign exchange reforms were designed to reduce multiple exchange rates and improve transparency in the currency market, while the removal of the petrol subsidy was aimed at reducing the government’s fiscal burden.
Similarly, electricity tariff reforms were introduced to improve the financial viability of the power sector and encourage investment by allowing tariffs for some customer categories to better reflect supply costs.
Nigeria’s rise in the Bloomberg ranking therefore represents an improvement in its relative position among African investment destinations, although investors are expected to continue monitoring the sustainability of the reforms, the country’s debt burden, inflation and economic growth.
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