Nigeria has overtaken Rwanda, Tanzania, Kenya and Namibia to rank eighth among 19 African economies assessed for relative investment risk by Bloomberg Economics, recording one of the biggest improvements in the 2026 Bloomberg Economics Investment Risk-O-Meter.
The four-place rise reflected improvements in three of the five indicators measured by the gauge: economic strength, fiscal strength and external vulnerability.
Bloomberg said Nigeria’s latest position was one of the more notable movements in the scorecard, while Mauritius emerged as the continent’s most investable economy among the 19 countries assessed.
“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.
Nigeria’s improved standing came against a mixed performance among other major African economies. Botswana dropped two places, while South Africa, which topped last year’s ranking, fell by one position, with Bloomberg attributing the decline to weaker economic growth outlooks.
The improvement in Nigeria’s ranking follows a series of economic reforms introduced since President Bola Tinubu assumed office in 2023, including the removal of the petrol subsidy, liberalisation of the foreign exchange market and the introduction of electricity tariffs aimed at reducing losses in the power sector.
The reforms have coincided with a gradual strengthening of economic growth during the period covered by the assessment.
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Nigeria’s real gross domestic product, GDP, growth rose from 2.54 per cent in the third quarter of 2023 to 3.46 per cent in the fourth quarter. Growth averaged 3.19 per cent in 2024 before strengthening to 3.85 per cent in 2025, the strongest annual performance within the review period.
In the first quarter of 2026, the economy expanded by 3.89 per cent, bringing average quarterly growth between the third quarter of 2023 and the first quarter of 2026 to about 3.46 per cent.
The sustained expansion in economic activity helped improve Nigeria’s position on the Bloomberg investment-risk gauge, although the ranking also highlights the continuing tension between macroeconomic reforms and fiscal pressures.
Nigeria’s public debt and debt-servicing obligations have risen sharply since the Tinubu administration assumed office.
Data from the Debt Management Office, DMO, showed that Nigeria’s total public debt stood at N87.38 trillion as of June 30, 2023, shortly after the administration took office. By December 31, 2025, the figure had risen to N159.28 trillion.
The DMO attributed the increase to higher borrowing, exchange-rate adjustments and the securitization of legacy obligations.
The rise in debt remains a significant fiscal challenge even as Nigeria’s relative position in the Bloomberg assessment improves.
The latest ranking places Nigeria ahead of Rwanda, Tanzania, Kenya and Namibia on the five-metric investment-risk gauge, with its gains concentrated in economic strength, fiscal strength and external vulnerability.
Mauritius ranked first in the 2026 scorecard, while Nigeria’s four-place rise made it one of the biggest movers in the assessment.
THE GUARDIAN NIGERIA
