Nigeria has emerged as Africa’s highest-performing economy in the economic performance category of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, outperforming other African nations assessed in the report despite a decline in its overall global competitiveness position.
According to the latest IMD rankings, Nigeria placed 55th globally in the economic performance pillar with a score of 45.2, making it the best-performing African country among the six nations evaluated. The ranking assessed 70 economies across four major indicators: economic performance, government efficiency, business efficiency and infrastructure.
Nigeria finished ahead of South Africa, Ghana, Kenya, Namibia and Botswana in the economic performance category. South Africa ranked second on the continent with 36.27 points, followed by Ghana with 34.6 points, Kenya with 33.19 points, Namibia with 22.3 points and Botswana with 18.25 points.
The report noted that the economic performance pillar measures key indicators such as domestic economic activity, international trade, foreign investment, employment and price stability. Nigeria’s performance in these areas helped it secure a leading position in Africa during the review period.
However, the country’s strong showing in economic performance was not enough to prevent a further decline in its overall competitiveness ranking. Nigeria slipped to 68th position out of the 70 economies assessed in 2026, down from 67th place in 2025, with an overall score of 38.8 points.
The IMD attributed the drop to weaker performances in several critical areas, including government efficiency, business efficiency and infrastructure.
Government efficiency fell from 50th position in 2025 to 53rd in 2026, while business efficiency declined from 59th to 63rd. Infrastructure remained Nigeria’s weakest area, with the country dropping to the bottom of the global rankings at 70th place, compared to 68th in the previous year.
A closer look at the economic performance indicators showed Nigeria ranking 51st in the domestic economy category, 64th in international trade, 64th in international investment, 61st in price stability and 64th in employment.
The report also highlighted a mixed performance across other competitiveness indicators. Nigeria recorded notable gains in public finance and tax policy, ranking 16th and 15th globally, respectively, reflecting improvements in fiscal management and revenue administration.
Despite these gains, significant institutional challenges remain. Nigeria ranked 69th globally in both institutional framework and societal framework, underscoring concerns about governance, public institutions and social cohesion.
Within the business efficiency category, the country performed relatively well in the labour market, securing 22nd position globally. However, it ranked last in finance, reflecting persistent difficulties businesses face in accessing affordable funding.
Business leaders surveyed by the IMD identified high borrowing costs, exchange rate volatility and inflation as the biggest obstacles to competitiveness in Nigeria.
The survey showed that 67.6 per cent of respondents cited borrowing costs as their primary concern, while 67.3 per cent pointed to exchange rate instability. Inflation was identified as a major challenge by 61.2 per cent of participants.
Other concerns raised by business executives included global economic uncertainty, supply chain disruptions and labour-related constraints.
Beyond these economic pressures, the report pointed to structural challenges such as insecurity, insurgency, banditry, unreliable electricity supply and transportation bottlenecks as major factors limiting Nigeria’s competitiveness on the global stage.
The findings suggest that while Nigeria continues to lead its African peers in economic performance, deeper reforms aimed at strengthening institutions, improving infrastructure and lowering the cost of doing business will be crucial for improving its overall competitiveness ranking.
The report comes amid growing signs of economic recovery in the country. Nigeria’s economy expanded by 4.07 per cent in real terms during the fourth quarter of 2025, while S&P Global Ratings recently upgraded the country’s long-term foreign and local currency credit ratings from B- to B.
The ratings agency attributed the upgrade to ongoing economic reforms by the Federal Government, improved foreign exchange liquidity, stronger fiscal revenues and rising external reserves, reinforcing optimism about Nigeria’s recovery prospects and reform agenda.
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