Nigeria tops Africa econ performance, ranks 68th globally
Nigeria emerged as the top African economy on the economic performance pillar of the IMD World Competitiveness Ranking 2026, scoring 45.2 points and ranking 55th globally on that pillar. Despite leading the continent, the country's overall competitiveness slipped one place to 68th out of 70 economies, with a score of 38.8, down from 67th in 2025. The report highlights steep declines in government efficiency (53rd from 50th), business efficiency (63rd from 59th), and infrastructure, which fell to last place globally at 70th (from 68th). Sub-indicator rankings show Nigeria weak in international trade, investment, prices and employment, while performing better in public finance (16th) and tax policy (15th). Business leaders cited borrowing costs (67.6%), exchange-rate volatility (67.3%) and inflation (61.2%) as the biggest competitiveness challenges, alongside insecurity, power shortages and transport bottlenecks. On the positive side, Nigeria's economy grew 4.07% year-on-year in real terms in Q4 2025, and S&P Global Ratings upgraded the country's long-term foreign and local currency credit rating to 'B' from 'B-', citing reforms, improved FX liquidity and stronger fiscal revenues.
What does this mean for Nigerians? The strong economic performance shows the underlying economy is expanding, but persistent infrastructure gaps, high borrowing costs and currency volatility raise the cost of doing business, potentially limiting job creation and keeping prices high. For businesses, access to finance remains a major hurdle, while households feel the squeeze through higher import costs and transport fares.
What should you watch or do? Monitor government infrastructure projects and reform efforts aimed at lowering borrowing costs and stabilizing the naira. Consider how these macro-factors affect your own expenses, investment decisions or job prospects, and engage in discussions about policies that could translate strong economic growth into broader competitiveness.