Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
Nigeria has emerged as the highest-performing economy among African countries assessed in the 2026 International Institute for Management Development (IMD) World Competitiveness Ranking, outperforming South Africa, Ghana, Kenya, Namibia, and Botswana on the economic performance pillar—even as the country slipped one place in the overall global competitiveness ranking amid persistent infrastructure deficits, macroeconomic instability, and institutional challenges.
The IMD report, which evaluated 70 economies across four broad pillars—economic performance, government efficiency, business efficiency, and infrastructure—placed Nigeria at 55th globally on economic performance with a score of 45.2 points. South Africa followed as the second-highest ranked African economy with 36.27 points (64th globally), while Ghana placed third with 34.6 points (65th). Kenya secured fourth place with 33.19 points (66th), Namibia recorded 22.3 points (68th), and Botswana ranked lowest among the African countries surveyed with 18.25 points (69th). The data revealed a 26.95-point gap between Nigeria, the highest-ranked African country in economic performance, and Botswana, the lowest-ranked.
The economic performance pillar measures domestic economic activity, international trade and investment, employment, and price developments. Under this pillar, Nigeria ranked 51st in domestic economy, 64th in international trade, 64th in international investment, 61st in prices, and 64th in employment. The ranking comes as the federal government continues efforts to stabilise the economy through reforms across key sectors.
Despite leading its African peers in economic performance, Nigeria's overall competitiveness weakened in the 2026 assessment. The country ranked 68th out of 70 economies in the overall IMD World Competitiveness Ranking, slipping one place from its 2025 position and posting an overall competitiveness score of 38.8. Nigeria's government efficiency ranking dropped to 53rd from 50th in 2025, while business efficiency fell to 63rd from 59th. Infrastructure remained Nigeria's weakest pillar, ranking 70th out of the 70 economies surveyed—down from 68th the previous year.
Within the government efficiency pillar, Nigeria performed relatively well in public finance (16th) and tax policy (15th) but placed 69th in institutional framework and 69th in societal framework. Under business efficiency, the country ranked 22nd in the labour market but 70th in finance, reflecting persistent financing challenges for businesses. In the infrastructure pillar, Nigeria ranked 69th in basic infrastructure, 68th in technological infrastructure, 63rd in scientific infrastructure, and 70th in both health and environment and education.
The report also identified the biggest concerns for business executives operating in Nigeria. Borrowing costs topped the list at 67.6 per cent, followed by exchange rate volatility at 67.3 per cent, inflation at 61.2 per cent, global uncertainty at 48 per cent, supply chain disruptions at 33 per cent, and labour constraints at 32 per cent. The IMD cited data from Nigeria's National Productivity Centre, which identified insecurity, insurgency, and banditry, particularly in the agricultural belt, as major obstacles to competitiveness. The report also highlighted infrastructure deficits, including unreliable electricity supply and transport bottlenecks, as factors increasing the cost of doing business. According to the IMD, macroeconomic instability, high inflation, weak public institutions, corruption, and low human capital development continue to weigh on Nigeria's 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 addressing macroeconomic instability remain critical to translating economic performance into sustained competitiveness.
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