—Gains reflect reforms even as structural challenges persist
—FX liberalisation, subsidy removal and tariff reforms boost scorecard
Nigeria rose four places to eighth in the 2026 Bloomberg Economics Investment Risk‑O‑Meter, overtaking Rwanda, Tanzania, Kenya and Namibia after improving across three of the five metrics assessed, Bloomberg said.
The ranking, which covers 19 African economies, places Nigeria among the notable movers, with Mauritius topping the list for relative investability. The improvement coincides with federal government reforms aimed at addressing long‑standing fiscal, foreign‑exchange and power‑sector challenges.
Nigeria climbs investment‑risk ranking
Nigeria strengthened in economic strength, fiscal strength and external vulnerability — the three metrics that lifted it to eighth place in the 2026 gauge. The country’s rise contrasts with weaker performances by some peers: Botswana fell two places, while South Africa — last year’s leader — slipped one spot amid softer growth outlooks.
Reforms underpin the gain
Bloomberg attributes part of the improvement to policy changes introduced since President Bola Tinubu took office in 2023, including the removal of the gasoline subsidy, liberalisation of the foreign‑exchange market and the introduction of electricity tariffs designed to reduce sector losses.
Economic growth strengthens after reforms
Nigeria’s real gross domestic product (GDP) has remained positive since 2023, though structural challenges persist. Quarterly growth rose from 2.54% in Q3 2023 to 3.46% in Q4 2023. Annual growth averaged 3.19% in 2024 and strengthened to 3.85% in 2025. In Q1 2026 the economy grew by 3.89%, with average quarterly growth between Q3 2023 and Q1 2026 at about 3.46%. These figures point to a gradual expansion of activity that helped Nigeria’s performance on the investment‑risk gauge.
Rising debt remains a challenge
Despite stronger revenue performance, public debt and debt‑service obligations have risen sharply. Data from the Debt Management Office show total public debt at N87.38 trillion on June 30, 2023, rising to N159.28 trillion by December 31, 2025. The increase reflects higher borrowing, exchange‑rate adjustments and the securitisation of legacy obligations, underscoring the fiscal pressures that accompany the reforms.
While the higher debt burden poses risks, Nigeria’s improved position in Bloomberg’s ranking indicates relative gains in key metrics compared with several other African economies. Sustained policy implementation and fiscal consolidation will be critical to converting the improved ranking into durable investment flows.
