Nigeria has climbed four places to eighth position in the 2026 Bloomberg Economics Investment Risk-O-Meter, recording one of the most notable improvements among the 19 African economies covered by the assessment.
The country moved ahead of Rwanda, Tanzania, Kenya and Namibia after improving in three of the five indicators used by Bloomberg Economics — economic strength, fiscal strength and external vulnerability.
Mauritius emerged as the highest-ranked economy in the latest assessment, while South Africa slipped from the leading position it occupied in the previous ranking amid weaker growth expectations.
Reforms Help Improve Nigeria’s Position
Nigeria’s improved position follows a series of major economic reforms implemented since President Bola Tinubu took office in May 2023.
They include the removal of the petrol subsidy, liberalisation of the foreign-exchange market and electricity tariff adjustments intended partly to reduce financial losses within the power sector.
The reforms have been economically disruptive and have contributed to significant increases in household and business costs.
But they have also addressed some structural distortions that had weighed on public finances and the foreign-exchange market.
Bloomberg’s assessment indicates that improvements in economic strength, fiscal conditions and external vulnerability have strengthened Nigeria’s relative position against several peer economies.
Growth Improves
Nigeria’s economy expanded by 3.85 per cent in 2025, while growth remained relatively strong into 2026.
The improvement matters because investors typically examine not only the size of an economy but also whether growth is strong enough to support business activity and government revenues.
Nigeria’s large population and consumer market have long provided significant investment potential.
However, infrastructure shortages, foreign-exchange constraints, regulatory uncertainty and other structural issues have sometimes reduced the country’s attractiveness relative to its potential.
Debt Remains an Important Concern
The improved ranking does not mean investment risks have disappeared.
Public debt remains a significant concern, alongside the cost of servicing government obligations.
Investors also continue to monitor inflation, currency stability, energy costs and the ability of reforms to produce sustainable improvements in household purchasing power.
Bloomberg’s ranking is therefore better understood as a relative risk assessment than a declaration that Nigeria has become a low-risk investment destination.
Mauritius Takes Top Position
Mauritius’ first-place position highlights the importance of institutional and macroeconomic conditions alongside market size.
South Africa, meanwhile, dropped one place after leading the previous ranking, reflecting weaker growth expectations.
Nigeria’s four-place improvement makes it one of the biggest movers in the latest scorecard.
Reform Benefits Face Implementation Test
For the Federal Government, the ranking provides evidence that some external assessments are responding positively to recent reforms.
The bigger challenge is maintaining those improvements while reducing the social and business costs associated with economic adjustment.
Investors ultimately require more than improved rankings.
They need predictable regulation, functioning infrastructure, currency stability, security and confidence that capital can generate sustainable returns.
Nigeria’s rise to eighth therefore represents progress in relative investment perception, but sustaining that momentum will depend on whether macroeconomic reforms are converted into stronger businesses, improved infrastructure and a more predictable operating environment.
