Nigeria has been ranked Africa’s best-performing economy on the economic performance pillar of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, even as it continues to struggle in overall global competitiveness due to structural weaknesses.
The report assessed 70 economies worldwide across economic performance, government efficiency, business efficiency, and infrastructure, placing Nigeria 55th globally in economic performance with a score of 45.2 points.
This made Nigeria the highest-ranked African country in that category, ahead of South Africa, Ghana, Kenya, Namibia, and Botswana.
South Africa followed in second place in Africa with 36.27 points, while Ghana, Kenya, Namibia, and Botswana trailed behind in varying positions across the global index.
Despite this strong showing in economic output, Nigeria’s overall competitiveness ranking fell further to 68th out of 70 countries, slipping from 67th position in 2025.
The report attributed the decline to weak infrastructure, declining business efficiency, and limited institutional strength, which continue to drag down the country’s overall performance.
Nigeria’s infrastructure ranking was the worst globally, placing 70th, while business efficiency and government efficiency also recorded declines compared to the previous year.
The country performed better in some fiscal areas, ranking 16th in public finance and 15th in tax policy, reflecting improvements in revenue management and fiscal reforms.
However, it ranked near the bottom in institutional and societal frameworks, highlighting ongoing governance and structural challenges.
Business leaders surveyed identified high borrowing costs, inflation, and exchange rate instability as the biggest barriers to competitiveness, alongside insecurity and poor infrastructure.
The IMD report noted that while Nigeria continues to show resilience in economic output, its long-term competitiveness depends heavily on reforms that strengthen institutions, improve infrastructure, and reduce the cost of doing business.
Recent economic indicators showed signs of recovery, with Nigeria’s economy growing by 4.07 per cent in the last quarter of 2025, supported by improved fiscal performance and stronger external reserves.
Credit rating agency S&P Global Ratings also recently upgraded Nigeria’s outlook, citing ongoing reforms and improved macroeconomic stability as key drivers of renewed investor confidence.
