Nigeria has topped the economic performance rankings among African nations assessed in the 2026 IMD World Competitiveness Ranking, though its overall competitiveness position slipped further against global peers.
The International Institute for Management Development evaluated 70 economies across four pillars: economic performance, government efficiency, business efficiency, and infrastructure. Nigeria scored 45.2 points in economic performance, placing 55th globally and first among the six African countries included in the review.
South Africa followed with 36.27 points and a 64th global rank, while Ghana placed third on the continent with 34.6 points at 65th worldwide. Kenya ranked fourth in Africa with 33.19 points at 66th globally, Namibia scored 22.3 points at 68th, and Botswana closed the African field with 18.25 points at 69th overall. The 26.95-point spread between Nigeria and Botswana underscores the divergence in economic momentum across the region.
The economic performance pillar measures domestic economic activity, international Trade and investment, employment, and prices. Within the sub-categories, Nigeria ranked 51st in domestic Economy, 64th in international trade and investment, 61st in prices, and 64th in employment.
Despite leading its African peers on this metric, Nigeria’s overall competitiveness weakened. The country fell one place to 68th out of 70 economies in the aggregate ranking, posting an overall score of 38.8. Government efficiency declined to 53rd from 50th in 2025, business efficiency dropped to 63rd from 59th, and infrastructure plunged to last place at 70th, down from 68th a year earlier.
Government efficiency sub-rankings revealed a mixed picture. Nigeria placed 16th in public finance and 15th in tax policy but ranked 69th in institutional framework, 58th in business legislation, and 69th in societal framework. Business efficiency showed strength in the labour market at 22nd but weakness in finance at 70th, productivity and efficiency at 65th, management practices at 62nd, and attitudes and values at 58th.
Infrastructure deficits remained acute. 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, drawing on data from Nigeria’s National Productivity Centre, identified insecurity, insurgency, and banditry — particularly in the agricultural belt — as major obstacles to competitiveness. Unreliable electricity supply and transport bottlenecks were cited as factors increasing the cost of doing business.
A survey of business executives highlighted borrowing costs as the top concern at 67.6 percent, followed closely by exchange rate volatility at 67.3 percent and inflation at 61.2 percent. Global uncertainty, supply chain disruptions, and labour constraints rounded out the leading challenges.
The IMD concluded that macroeconomic instability, high inflation, weak public institutions, corruption, and low human capital development continue to weigh on Nigeria’s competitiveness trajectory, even as the federal government pursues reforms across key sectors to stabilise the economy.
