Nigeria Climbs Africa Investment Ladder, Overtakes Four Nations

Nigeria Climbs Africa Investment Ladder, Overtakes Four Nations

Nigeria has climbed four places to eighth position in Africa’s latest investment risk ranking, overtaking Rwanda, Tanzania, Kenya and Namibia in the 2026 assessment.

The improvement makes Nigeria the biggest climber among the 19 African economies assessed in the ranking, which measures relative investment attractiveness using five key indicators.

Nigeria’s stronger position was driven by improvements in economic strength, fiscal strength and external vulnerability, according to the assessment.

The latest ranking puts Nigeria ahead of Rwanda, Tanzania, Kenya and Namibia, while Mauritius emerged as the highest-ranked African economy. South Africa, which occupied the top position in the previous edition, dropped one place amid a weaker economic-growth outlook.

Nigeria’s rise comes against the backdrop of a series of economic reforms introduced since President Bola Ahmed Tinubu assumed office in 2023. The reforms include the removal of the petrol subsidy, changes to the foreign-exchange market and electricity tariff reforms.

The Federal Government has maintained that the measures were necessary to address long-standing fiscal and economic challenges, improve public finances and create a more attractive environment for investors.

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The improved ranking also comes as Nigeria records stronger economic growth. The economy expanded by 3.89 per cent in the first quarter of 2026, while average quarterly growth between the third quarter of 2023 and the first quarter of 2026 stood at about 3.46 per cent.

Nigeria’s improved position, however, does not mean the country has overtaken the four nations in terms of actual foreign investment inflows. The ranking measures relative investment risk and investability, rather than the total amount of foreign direct investment received.

Separate investment data showed that Nigeria attracted about $4.01 billion in foreign direct investment in 2025, representing a substantial increase from the previous year.

Nigeria also recorded a sharp rise in overall capital inflows in 2025, although a significant portion of the increase came from foreign portfolio investment rather than long-term direct investment.

The distinction is important because portfolio investors can respond more quickly to interest rates, exchange-rate movements and financial-market conditions, while foreign direct investment generally involves longer-term commitments to businesses, infrastructure and productive assets.

Despite the improvement in the investment ranking, Nigeria continues to face significant economic challenges, including high living costs, inflationary pressures, infrastructure deficits, foreign-exchange concerns and rising public debt.

The latest assessment therefore presents a mixed picture, with Nigeria’s relative position on key investment-risk indicators improving even as significant fiscal and structural challenges remain.

The country’s four-place rise nevertheless places Nigeria among the African economies that recorded the most significant improvement in relative investment attractiveness in the latest assessment.

Nigeria Climbs Africa Investment Ladder, Overtakes Four Nations