Nigeria has risen four places to eighth in the 2026 Bloomberg Economics Investment Risk-O-Meter, emerging as the biggest climber among the African economies assessed. The country's improved standing reflected gains in three of the five indicators used in the assessment, namely economic strength, fiscal strength, and external vulnerability. This development provides an external measure of the changes taking place in Nigeria's macroeconomic environment since the administration of President Bola Tinubu embarked on a series of far-reaching reforms from 2023.
The reforms implemented by the Nigerian government, including the removal of the petrol subsidy, the liberalisation of the foreign exchange market, and changes to electricity tariffs, have contributed to the country's improved ranking. Although these measures have imposed substantial adjustment costs on businesses and households, the Bloomberg assessment suggests that the economy's underlying indicators have strengthened sufficiently to improve Nigeria's relative position against several other African markets. The country's economic expansion has remained positive throughout the period under review.
Nigeria's economic growth strengthened further in 2025 to 3.85 per cent, the strongest annual performance within the period cited in the assessment. The economy continued to grow, reaching 3.89 per cent in the first quarter of 2026 and 4.43 per cent in the second quarter of 2026. These figures pointed to a gradual strengthening of economic activity following the initial disruption associated with the government's reform programme. However, growth remained below the level required to significantly alter living standards in a country with a rapidly expanding population.
The Bloomberg ranking placed Nigeria ahead of Rwanda, Tanzania, Kenya, and Namibia, with Mauritius occupying the top position. The survey cites gains in economic strength, fiscal position, and external vulnerability as the key factors contributing to Nigeria's improved standing. The country's movement also came as some other major African economies lost ground, with South Africa slipping one place in the ranking.
Despite the improvement in Nigeria's ranking, the country continues to face significant fiscal, infrastructure, and institutional challenges. The government's reforms have also had a negative impact on businesses and households, with higher energy, transportation, and food costs contributing to inflationary pressures and weakening purchasing power. Nevertheless, the Bloomberg assessment suggests that Nigeria's economy has made progress in recent times.
The Bloomberg Economics Investment Risk-O-Meter measures the relative investment attractiveness and risks of 19 African economies. The ranking is significant not necessarily because Nigeria has become a low-risk investment destination, but because its relative position has improved at a time when investors continue to reassess African markets amid divergent growth, fiscal, and external conditions.
In conclusion, Nigeria's improved ranking in the Bloomberg Economics Investment Risk-O-Meter reflects the country's progress in recent times. The government's reforms have contributed to the country's improved standing, although significant challenges remain. The country's economic growth has remained positive, and the Bloomberg assessment suggests that Nigeria's economy has made progress in recent times.
Key points
- Nigeria jumps 4 places to 8th in Bloomberg Economics Investment Risk-O-Meter
- Reforms contribute to gains in economic strength, fiscal position
- Country still faces significant fiscal, infrastructure, and institutional challenges
