Nigeria has climbed four places to eighth in Africa’s latest investment risk ranking, overtaking Rwanda, Tanzania, Kenya and Namibia as reforms under President Bola Tinubu improved its relative attractiveness to investors.
The Bloomberg Economics Investment Risk-O-Meter, which ranks 19 African economies, identified Nigeria as the continent’s biggest climber in its 2026 assessment.
Bloomberg said the improvement was driven by stronger performances in economic strength, fiscal strength and external vulnerability, three of the five indicators used in the ranking.
“Nigeria was the biggest climber in a ranking of Africa’s most investable markets, propelled by President Bola Tinubu’s economic reforms,” Bloomberg said in its latest edition of An Investor’s Guide to Africa.
The ranking places Nigeria ahead of Rwanda, Tanzania, Kenya and Namibia, despite continuing concerns over inflation, public debt, infrastructure deficits, living costs and foreign exchange pressures.
Mauritius retained the top position as Africa’s most investable market, while South Africa, which led the previous ranking, fell one place amid a weaker economic growth outlook. Botswana also dropped two places.
Nigeria’s improved standing comes more than three years into the Tinubu administration, which has introduced major reforms to the petrol, foreign exchange and electricity sectors.
The removal of the petrol subsidy, changes to the foreign exchange market and electricity tariff reforms were designed to reduce fiscal pressures, address market distortions and create a more attractive environment for investment.
The reforms have, however, come with significant economic pressures for households and businesses, particularly through higher transport, food and energy costs.
Nigeria’s economy has continued to expand despite the adjustment pains. Real Gross Domestic Product growth rose from 2.54 per cent in the third quarter of 2023 to 3.46 per cent in the fourth quarter of that year.
The economy grew by an average of 3.19 per cent in 2024 before accelerating to 3.85 per cent in 2025, its strongest annual performance within the period covered by the assessment.
Growth stood at 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 improved investment ranking also comes despite a substantial rise in Nigeria’s public debt.
According to the Debt Management Office, total public debt increased from N87.38tn as of June 30, 2023, to N159.28tn by December 31, 2025 — an increase of N71.90tn, or about 82.3 per cent.
The DMO attributed the increase to new borrowing, foreign exchange adjustments and the securitisation of some legacy obligations.
Nigeria has struggled to attract sufficient foreign investment over the years because of exchange-rate instability, policy uncertainty, weak infrastructure, insecurity and limited fiscal space.
The latest Bloomberg assessment suggests that some of the reforms have improved Nigeria’s relative position among African investment destinations, although investors are expected to continue watching the sustainability of the reforms, the country’s debt burden and its growth outlook.
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