Nigeria has ranked as Africa’s best-performing economy under the economic performance pillar of the 2026 IMD World Competitiveness Ranking.

The country placed 55th globally on economic performance, with a score of 45.2. That put it ahead of South Africa, Ghana, Kenya, Namibia and Botswana among the African economies assessed.

But the headline comes with a warning.

Nigeria still ranked 68th out of 70 economies in overall competitiveness. This shows that stronger economic activity has not yet translated into a more competitive business environment.

What the IMD Ranking Measures

The International Institute for Management Development ranks economies using four major pillars.

They are economic performance, government efficiency, business efficiency and infrastructure.

The economic performance pillar looks at domestic output, trade, investment, employment and price trends.

Nigeria performed better than its African peers on this measure.

But the country struggled in other areas that matter to investors and businesses.

How Nigeria Compared With African Peers

Nigeria led the six African countries assessed under the economic performance pillar.

South Africa ranked second among the African economies. Ghana came third, followed by Kenya, Namibia and Botswana.

African Economy	Economic Performance Score	Global Rank
Nigeria	45.20	55th
South Africa	36.27	64th
Ghana	34.60	65th
Kenya	33.19	66th
Namibia	22.30	68th
Botswana	18.25	69th

The gap between Nigeria and Botswana stood at 26.95 points.

This suggests that Nigeria still has strong economic momentum compared with several African peers. But it also shows how weak Africa’s broader competitiveness base remains on the global stage.

Why the Ranking Is a Mixed Signal

Nigeria’s 55th position on economic performance may look positive.

It suggests stronger domestic activity and better output performance when compared with other African economies in the ranking.

But Nigeria’s overall position tells a different story.

The country dropped to 68th globally in overall competitiveness, down from 67th in 2025.

That means Nigeria still sits near the bottom of the 70-economy table.

The problem is not only growth. The problem is the environment in which businesses operate.

Where Nigeria Struggled Most

Nigeria’s weakest area remains infrastructure.

The country ranked 70th globally on infrastructure, the lowest position in the entire ranking.

This reflects old problems. Businesses still deal with unreliable electricity, poor transport networks, high logistics costs and weak public infrastructure.

Nigeria also recorded weak scores in government efficiency and business efficiency.

Government efficiency fell to 53rd from 50th in 2025. Business efficiency dropped to 63rd from 59th.

These declines show that policy execution, regulatory quality and business conditions still need major improvement.

Business Leaders Flag Borrowing Costs and FX Volatility

The IMD survey also captured the concerns of business executives in Nigeria.

Borrowing costs ranked as the top issue, cited by 67.6% of respondents.

Exchange rate volatility followed closely at 67.3%. Inflation came next at 61.2%.

Executives also pointed to global uncertainty, supply chain disruptions and labour constraints.

These concerns match the reality many businesses face.

Companies still struggle with expensive loans, unstable input costs and currency pressure. Many also face weak power supply, insecurity and transport bottlenecks.

The Strong and Weak Spots

Nigeria recorded some bright spots.

The country ranked 16th in public finance and 15th in tax policy.

It also placed 22nd in labour market under business efficiency.

But those strengths did not offset deeper weaknesses.

Nigeria ranked 69th in institutional framework and societal framework. It also ranked 70th in finance under business efficiency.

That weak finance ranking matters.

It shows how difficult it remains for companies to access affordable capital. Without cheaper and stable finance, businesses struggle to expand, hire and compete.

Why This Matters for Investors

The ranking gives investors a split picture.

Nigeria offers scale, population, market size and economic activity.

But the country still carries major operating risks.

Poor infrastructure raises business costs. Currency swings make planning difficult. High interest rates reduce investment appetite. Weak institutions also create uncertainty.

This is why Nigeria can lead Africa on economic performance but still fall close to the bottom in overall competitiveness.

The economy has potential. The operating environment still limits that potential.

Recent Economic Context

Nigeria’s economy grew by 4.07% year-on-year in real terms in the fourth quarter of 2025.

That growth showed stronger momentum after years of pressure from inflation, currency reforms and subsidy removal.

S&P Global Ratings also upgraded Nigeria’s long-term foreign and local currency sovereign credit ratings to B from B- in May 2026. The agency cited an improving macroeconomic profile.

These developments support the argument that Nigeria’s economy has gained some traction.

But competitiveness requires more than growth.

It requires stable policy, reliable infrastructure, cheaper finance, stronger institutions and lower business costs.

Expert View

Nigeria’s IMD performance sends two messages at once.

The first message is positive. Nigeria still has the economic size and activity level to outperform several African peers.

The second message is more serious. Growth alone will not make Nigeria competitive.

The country needs to reduce the cost of doing business. It must fix electricity, transport and security problems. It must also improve access to finance for companies.

Policy reforms have helped improve investor sentiment. But reforms must translate into lower inflation, stable exchange rates and better infrastructure.

Until that happens, Nigeria may keep ranking well on economic performance while remaining weak in overall competitiveness.

The Bigger Picture

Nigeria’s position in the IMD ranking shows a familiar contradiction.

The country has one of Africa’s largest economies, a young population and a large consumer market.

But it still struggles to convert those strengths into a globally competitive business environment.

The latest ranking should not only serve as a badge of progress. It should act as a reform checklist.

Nigeria needs to protect recent macroeconomic gains while fixing the structural issues that keep businesses under pressure.

If the government can improve infrastructure, lower financing costs and strengthen institutions, Nigeria can move beyond economic performance and become truly competitive.

Frequently Asked Questions

What position did Nigeria rank in IMD economic performance?

Nigeria ranked 55th globally on the economic performance pillar of the 2026 IMD World Competitiveness Ranking.

Did Nigeria top Africa in economic performance?

Yes. Nigeria recorded the highest economic performance score among the six African countries assessed in the report.

Which African countries were assessed?

The African economies mentioned were Nigeria, South Africa, Ghana, Kenya, Namibia and Botswana.

What was Nigeria’s overall competitiveness rank?

Nigeria ranked 68th out of 70 economies in the overall competitiveness ranking.

Why did Nigeria rank low overall?

Nigeria struggled with infrastructure deficits, weak institutions, high borrowing costs, exchange rate volatility and inflation.

What was Nigeria’s weakest area?

Infrastructure was Nigeria’s weakest area. The country ranked 70th globally on that pillar.

What were the biggest concerns for business executives?

Business executives cited borrowing costs, exchange rate volatility and inflation as the biggest competitiveness challenges.

What does the ranking mean for investors?

It shows that Nigeria has strong economic potential, but investors still face high operating costs and structural risks.

What should Nigeria do next?

Nigeria should improve infrastructure, reduce business financing costs, strengthen institutions and stabilise inflation and the exchange rate.