Nigeria has emerged as the biggest climber in Africa’s latest investment risk assessment, rising four places to eighth position in the 2026 Bloomberg Economics Investment Risk-O-Meter.
The improvement comes as economic reforms introduced under President Bola Tinubu’s administration have strengthened Nigeria’s performance across several of the indicators used to assess the relative attractiveness and risks of African economies.
The Bloomberg assessment covers 19 African economies and compares their relative investability. Nigeria’s latest position places it ahead of Rwanda, Tanzania, Kenya and Namibia, while Mauritius retained the top position.
Nigeria records four-place improvement
According to Bloomberg Economics, Nigeria improved in three of the five metrics used in the Investment Risk-O-Meter: economic strength, fiscal strength and external vulnerability.
The four-place rise represents the largest improvement among the African economies highlighted in the latest assessment.
Nigeria’s improved position follows several major policy changes implemented since Tinubu assumed office in 2023.
Among the most significant were the removal of the petrol subsidy, changes to the foreign exchange market and electricity-sector reforms. The government has argued that the measures were necessary to address longstanding distortions, improve public finances and create conditions for greater investment.
The reforms initially brought significant pressure on households and businesses, particularly through higher fuel, transportation and electricity costs, as well as inflation and currency-related pressures.
However, Bloomberg’s latest assessment indicates that the country’s relative position on key macroeconomic indicators has improved.
Economic growth supports Nigeria's improved position
Nigeria’s stronger economic performance has also contributed to the changing investment picture.
The economy recorded annual growth of 3.85 per cent in 2025, while growth accelerated to 3.89 per cent year-on-year in the first quarter of 2026 and 4.43 per cent in the second quarter, according to figures reported by Nigerian business publications citing the National Bureau of Statistics.
The second-quarter figure represented Nigeria’s strongest annual growth rate in the period highlighted by the reports.
The improvement in economic strength is significant for investors because Nigeria has struggled for years with weak growth, foreign-exchange shortages, fiscal pressures and uncertainty around economic policy.
The latest Bloomberg ranking suggests that, despite those challenges, the country's macroeconomic indicators have improved relative to several other African markets.
Reforms remain central to the investment story
The removal of the petrol subsidy has been one of the most consequential policies of Tinubu’s administration.
Before its removal, the subsidy required substantial government expenditure to keep petrol prices below market levels. Its elimination reduced that direct fiscal burden but resulted in a sharp increase in fuel prices, with knock-on effects across transportation, food and other areas of the economy.
The government also moved toward a more market-driven foreign-exchange system. The reform was designed to reduce distortions in the currency market, improve dollar liquidity and make it easier for businesses and investors to access foreign exchange.
Electricity-sector reforms have also formed part of the administration’s broader economic programme, including tariff changes intended to improve the financial sustainability of the power sector and encourage investment.
Bloomberg's assessment indicates that these changes have contributed to improvements in Nigeria's economic, fiscal and external indicators.
Nigeria still faces major investment challenges
The rise in the ranking does not mean Nigeria has become a low-risk investment destination.
The country continues to face challenges involving infrastructure, inflation, public finances, institutional capacity and the cost of doing business.
Nigeria's public debt has also increased substantially in recent years. Data cited by BusinessDay from the Debt Management Office put total public debt at N159.28 trillion at the end of 2025, compared with N87.38 trillion in June 2023.
The increase highlights the fiscal pressures that remain even as Nigeria's position in the Bloomberg assessment improves.
The International Monetary Fund has likewise identified infrastructure and human-capital gaps, fiscal pressures and the possibility of a slowdown in reform momentum as risks to Nigeria's economic outlook. At the same time, the IMF has said continued reforms could support investment, foreign-exchange reserves and economic growth.
Nigeria overtakes four African economies
Nigeria’s move to eighth position puts it ahead of four countries that had ranked above it previously: Rwanda, Tanzania, Kenya and Namibia.
The shift comes as African economies compete to attract foreign direct investment and international capital.
Mauritius occupied first place in the latest assessment, while South Africa dropped one position after previously leading the ranking. Botswana also fell two places.
For Nigeria, the four-place improvement provides a positive indicator of how international investors may view the country's changing macroeconomic environment, although the ranking measures relative performance rather than eliminating the underlying risks facing the economy.
What the ranking means for Nigeria
The Bloomberg assessment comes at a critical point for Nigeria as the government seeks to turn its economic reforms into stronger investment, higher productivity and sustained growth.
The improved ranking could strengthen the country's efforts to attract capital into sectors such as energy, manufacturing, infrastructure, technology and financial services.
However, maintaining the gains will depend on whether improvements in macroeconomic indicators can be sustained while addressing the structural challenges that continue to affect businesses and households.
For investors, Nigeria’s rise to eighth position represents an improvement in its relative standing among the 19 African economies assessed by Bloomberg Economics. But the country’s investment outlook will continue to depend on the implementation of reforms, fiscal management, infrastructure development and the broader business environment.
