Nigeria Climbs 7 Places To 11th In Africa Investment Ranking

Nigeria has climbed seven places to 11th position in the 2026/2027 “Where to Invest in Africa” report by Rand Merchant Bank (RMB), recording the biggest improvement among countries ranked in the latest edition.

The improvement from 18th position in the 2025/2026 report reflects growing confidence in the country’s investment outlook following the implementation of major economic reforms, although structural challenges continue to weigh on its long-term competitiveness.

Nigeria had ranked ninth in the 2024/2025 edition before dropping to 18th in the subsequent ranking as the economy absorbed the immediate impact of foreign exchange and other policy adjustments.

Commenting on Nigeria’s improved position, Chief Economist at RMB, Isaah Mhlanga, said the previous decline reflected the immediate consequences of reforms required to reposition the economy for long-term growth.

“Last year’s decline was the immediate reaction to necessary long-term reform. Nigeria’s improved position now reflects the view that the economy has been set on a more stable course. Good policy decisions are hard to make and implement, but they ultimately drive investment and economic growth,” he said.

The report noted that Nigeria’s performance should be assessed against the broader economic adjustments undertaken in recent years, including foreign exchange market reforms and statistical changes arising from the rebasing of the country’s Gross Domestic Product (GDP) and Consumer Price Index (CPI).

It, however, cautioned that an improved investment ranking does not automatically translate into sustainable investment opportunities, stressing the need to strengthen the country’s capacity to withstand economic shocks.

RMB also introduced a Resilience and Vulnerability Matrix in the latest edition, which examines the ability of African economies to sustain investment opportunities amid economic pressures.

The matrix considers resilience in terms of policies, institutions and economic buffers that enable countries to withstand and recover from shocks, while vulnerability measures structural weaknesses, including export concentration, import dependence, climate risks and external financing requirements.

According to the report, Nigeria’s greatest competitive advantage remains its market size, ranking first in population and third in GDP among the 31 African countries assessed. However, weaknesses in public institutions, limited economic complexity and dependence on oil exports remain significant constraints to the country’s long-term economic resilience.

While macroeconomic stability was identified as a relative strength, the report described the strength of public institutions as Nigeria’s biggest gap.

It stressed that sustaining the country’s improved investment position would require more than policy adjustments, noting that stronger institutions and a diversified economic base would be critical to attracting and retaining long-term investments.

The report stated that Nigeria’s improved ranking represents an early indication that ongoing reforms are beginning to strengthen its investment trajectory.