Nigeria has risen four places to become the eighth most investable market in Africa, emerging as the biggest climber in Bloomberg Economics’ 2026 Investment Risk-O-Meter, which assesses the relative investment attractiveness and risks of 19 African economies.
The improvement, driven by President Bola Tinubu’s economic reforms, saw Nigeria overtake Rwanda, Tanzania, Kenya and Namibia. The ranking, released on 5 October 2026, placed Mauritius first overall, while South Africa, last year’s leader, dropped one place on weaker growth prospects.
Nigeria’s rise reflects gains in three of the five metrics assessed: economic strength, fiscal strength and external vulnerability. Bloomberg attributed the improvement to the rebasing of gross domestic product, stronger growth and an improved external position, which have “lifted its macro credentials substantially.”
The country’s economic strength score rose to 0.4, fiscal strength stood at 0.6 and external vulnerability improved to 1.4. However, weaknesses remain in institutions and governance, scored at -1.2, and infrastructure, scored at -0.5, highlighting areas where further reform is needed to sustain investor confidence.
The 2026 ranking marks a significant reversal from the previous year, when Nigeria fell to 18th position in Rand Merchant Bank’s Where to Invest in Africa report, amid currency reforms, inflationary pressures and a lower dollar GDP. The latest Bloomberg assessment suggests that the Tinubu administration’s reforms—particularly on the naira and fiscal policy—are beginning to reshape investor perceptions.
Nigeria’s improved standing is also reflected in broader investment flows. According to the UN Trade and Development (UNCTAD) World Investment Report 2026, Nigeria’s foreign direct investment inflows jumped 148 per cent in 2025, rising from $1.61 billion in 2024 to $4.01 billion, placing it among Africa’s leading investment destinations.
Nigeria’s stock market has reinforced this positive narrative. The Nigerian Exchange delivered a 34.39 per cent dollar return year-to-date as of February 2026, emerging as Africa’s strongest performer in dollar terms, and ended the first half of 2026 with a 59.5 per cent dollar return.
This market momentum, combined with improved macroeconomic fundamentals, positions Nigeria as an increasingly attractive destination for foreign capital. The challenge now is to build on these gains by addressing governance and infrastructure weaknesses that continue to weigh on the country’s overall investability score.
For investors, Nigeria’s four-place rise signals a improving risk-reward profile, particularly for those seeking exposure to Africa’s largest economy and consumer market. The country’s improved external position and fiscal strength reduce some of the currency and balance-of-payments risks that have historically deterred investment.
For policymakers, the ranking validates the direction of recent reforms but underscores the need to tackle institutional and infrastructure deficits. Sustaining this momentum will require continued fiscal discipline, deeper structural reforms and investment in the physical and governance foundations that underpin long-term economic growth.
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