Nigeria emerged as the highest-performing African economy on the economic performance pillar of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, outperforming five other African countries assessed in the report
The IMD report, which evaluated 70 economies across economic performance, government efficiency, business efficiency and infrastructure, ranked Nigeria 55th globally on economic performance with a score of 45.2
Despite leading Africa in economic performance, Nigeria slipped one place in the overall competitiveness ranking, placing 68th out of 70 economies as persistent infrastructure deficits, macroeconomic instability and institutional challenges continued to weigh on its business environment
What the report is saying
The IMD said Nigeria recorded the highest economic performance score among the six African countries included in the assessment, with a significant gap over its continental peers
- Nigeria scored 45.2 points, making it the highest-performing African economy on the economic performance pillar.
- South Africa ranked second in Africa with 36.27 points (64th globally), followed by Ghana with 34.6 points (65th), Kenya with 33.19 points (66th), Namibia with 22.3 points (68th) and Botswana with 18.25 points (69th).
- The report highlighted a 26.95-point gap between Nigeria, the highest-ranked African economy on the pillar, and Botswana, the lowest-ranked African country assessed.
The economic performance pillar measures domestic economic activity, international trade and investment, employment, and price developments
The ranking suggests Nigeria recorded stronger economic performance relative to its African peers, even as broader competitiveness challenges persisted
More Insights
While Nigeria led Africa in economic performance, its overall competitiveness weakened in the 2026 IMD rankings due to declines across several key pillars
- Nigeria dropped to 68th out of 70 economies in overall competitiveness with a score of 38.8 in 2026, from 67th position in 2025.
- Government efficiency declined to 53rd from 50th in 2025, while business efficiency fell to 63rd from 59th.
- Infrastructure remained Nigeria’s weakest area, with the country ranking 70th globally, down from 68th in the previous year.
- On the economic performance sub-indicators, Nigeria ranked 51st in the domestic economy, 64th in international trade, 64th in international investment, 61st in prices and 64th in employment.
The report also showed mixed performance across other indicators
- Nigeria ranked 16th in public finance and 15th in tax policy, but placed 69th in institutional framework and societal framework. Under business efficiency, it ranked 22nd in the labour market but 70th in finance, reflecting persistent financing challenges for businesses.
The IMD noted that business executives in Nigeria identified borrowing costs, exchange rate volatility and inflation as the country’s biggest competitiveness challenges
- Borrowing costs ranked as the top concern, cited by 67.6% of respondents.
- Exchange rate volatility followed at 67.3%, while inflation was identified by 61.2% of business executives.
- Other concerns included global uncertainty (48%), supply chain disruptions (33%) and labour constraints (32%).
The report also cited insecurity, insurgency, banditry, unreliable electricity supply and transport bottlenecks as major obstacles to improving competitiveness
These findings suggest that while Nigeria’s economy outperformed its African peers on economic performance, structural reforms aimed at improving infrastructure, strengthening institutions and lowering the cost of doing business remain critical to enhancing its overall global competitiveness
What you should know
Nigeria’s economy grew by 4.07 per cent year-on-year in real terms in the fourth quarter (Q4) of 2025
- Recently, S&P Global Ratings upgraded Nigeria’s long-term foreign and local currency credit ratings to ‘B’ from ‘B-’, citing FG’s economic reforms, improved foreign exchange liquidity, stronger fiscal revenues, and rising external reserves.
- In February, S&P Global Ratings reaffirmed Nigeria’s sovereign credit rating at B-, keeping a positive outlook that reflects cautious optimism about the country’s economic recovery and ongoing fiscal reforms.
The reaffirmation follows S&P’s November 2025 decision to upgrade Nigeria’s outlook from stable to positive while keeping the B-/B foreign and local currency ratings