Nigeria has made significant strides in the Bloomberg Economics Investment Risk-O-Meter, climbing four places to rank eighth among 19 African economies assessed for relative investment risk. This notable improvement saw Nigeria overtake Rwanda, Tanzania, Kenya, and Namibia. The country's rise is attributed to enhancements in three key areas: economic strength, fiscal strength, and external vulnerability.
According to Bloomberg, Nigeria's latest position is one of the more remarkable movements in the scorecard. Mauritius emerged as the continent's most investable economy among the 19 countries assessed. The Bloomberg Economics Investment Risk-O-Meter evaluates African economies based on five indicators, providing a comprehensive view of their investment risk profiles. Nigeria's improvement in three of these metrics contributed to its enhanced ranking.
The improvement in Nigeria's ranking aligns with a series of economic reforms introduced since President Bola Tinubu assumed office in 2023. These reforms include the removal of the petrol subsidy, liberalization of the foreign exchange market, and the introduction of electricity tariffs aimed at reducing losses in the power sector. These changes have coincided with a gradual strengthening of economic growth during the period covered by the assessment.
Nigeria's real gross domestic product (GDP) growth has shown a positive trend, rising from 2.54 percent in the third quarter of 2023 to 3.46 percent in the fourth quarter. The economy averaged 3.19 percent growth in 2024 and strengthened to 3.85 percent in 2025, marking the strongest annual performance within the review period. In the first quarter of 2026, the economy expanded by 3.89 percent, bringing the average quarterly growth between the third quarter of 2023 and the first quarter of 2026 to about 3.46 percent.
Despite the improved ranking, Nigeria faces ongoing fiscal challenges. The country's public debt and debt-servicing obligations have risen sharply since the Tinubu administration took office. Data from the Debt Management Office (DMO) shows that Nigeria's total public debt stood at N87.38 trillion as of June 30, 2023. By December 31, 2025, this figure had increased to N159.28 trillion, attributed 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. Mauritius ranked first in the 2026 scorecard, while Nigeria's four-place rise made it one of the biggest movers in the assessment. This progress highlights the country's efforts to enhance its economic stability and attract investments.
Other major African economies have shown mixed performance in the Bloomberg ranking. Botswana dropped two places, while South Africa, which topped last year's ranking, fell by one position due to weaker economic growth outlooks. Nigeria's sustained expansion in economic activity and improvements in key metrics have contributed to its enhanced position, positioning it as a more attractive investment destination in Africa.
Key points
- Nigeria climbed four places to rank eighth in the 2026 Bloomberg Economics Investment Risk-O-Meter.
- The country's improvement is attributed to enhancements in economic strength, fiscal strength, and external vulnerability.
- Nigeria's public debt rose sharply to N159.28 trillion as of December 31, 2025, posing ongoing fiscal challenges.
