Nigeria has claimed the top spot among African economies for economic performance in the 2026 IMD World Competitiveness Ranking, yet the country slipped to 68th out of 70 nations in the overall global competitiveness index, underscoring deep structural weaknesses that continue to undermine its broader economic standing.
The International Institute for Management Development assessed 70 economies across four pillars: economic performance, government efficiency, business efficiency, and infrastructure. Nigeria scored 45.2 points in the economic performance category, placing 55th globally and leading a field of six African nations included in the report. South Africa followed with 36.27 points at 64th globally, while Ghana ranked third on the continent with 34.6 points at 65th worldwide. Kenya, Namibia, and Botswana trailed at 66th, 68th, and 69th globally, respectively, creating a 26.95-point gap between the highest and lowest ranked African economies.
The economic performance pillar measures domestic economic activity, international Trade and investment, employment, and price stability. Nigeria ranked 51st in domestic Economy but fell to 64th in both international trade and international investment, 61st in prices, and 64th in employment.
Despite this continental lead, Nigeria’s overall competitiveness score dropped to 38.8 points, down one place from the previous year. Infrastructure remained the weakest pillar, ranking last globally at 70th. Government efficiency declined from 50th to 53rd, while business efficiency fell from 59th to 63rd.
The report reveals stark contrasts across sub-indicators. Nigeria performed relatively well in public finance (16th) and tax policy (15th) under government efficiency. However, it ranked 69th in both institutional framework and societal framework, and 58th in business legislation. In business efficiency, the labour market placed 22nd globally, but finance ranked last at 70th, with productivity and efficiency at 65th. Infrastructure deficits were pervasive: basic infrastructure at 69th, technological infrastructure at 68th, scientific infrastructure at 63rd, while Health and environment and education both anchored the bottom at 70th.
Business executives surveyed for the report identified borrowing costs as the primary challenge, cited by 67.6 percent of respondents. Exchange rate volatility followed closely at 67.3 percent, with inflation at 61.2 percent. Global uncertainty, supply chain disruptions, and labour constraints rounded out the leading concerns.
The IMD, drawing on data from Nigeria’s National Productivity Centre, highlighted insecurity, insurgency, and banditry — particularly in agricultural communities — as critical constraints. Unreliable electricity, inadequate transport networks, macroeconomic instability, weak public institutions, corruption, and low human capital development were also cited as factors increasing the cost of doing business and eroding competitiveness.
While the federal government continues to implement reforms aimed at macroeconomic stability and investment attraction, the report underscores that deeper structural changes in governance, infrastructure, and institutional capacity are essential for Nigeria to translate economic performance into sustainable global competitiveness.
