Nigeria has emerged as Africa’s top performer on the economic performance pillar of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, even as the country slipped further in the overall global standings due to persistent infrastructure gaps, institutional weaknesses and macroeconomic pressures.
The IMD report, which evaluated 70 economies across four pillars — economic performance, government efficiency, business efficiency and infrastructure — placed Nigeria 55th globally on economic performance with a score of 45.2, the highest among the six African nations assessed. South Africa followed at 64th globally with 36.27 points, then Ghana at 65th with 34.6 points, Kenya at 66th with 33.19 points, Namibia at 68th with 22.3 points and Botswana at 69th with 18.25 points. Nigeria’s lead over Botswana stood at 26.95 points.
The economic performance pillar measures domestic economic activity, international Trade and investment, employment and price developments, indicating that Nigeria delivered stronger economic outcomes than its continental peers during the review period.
Yet the country’s overall competitiveness deteriorated, dropping to 68th out of 70 economies in the 2026 rankings from 67th in 2025 with a score of 38.8 points. The decline was driven by weakening scores across multiple indicators. Government efficiency fell to 53rd from 50th a year earlier, while business efficiency declined to 63rd from 59th. Infrastructure remained Nigeria’s weakest area, plunging to last place globally at 70th, down from 68th.
On economic performance sub-indicators, Nigeria ranked 51st in domestic Economy, 64th in international trade, 64th in international investment, 61st in prices and 64th in employment. The report also revealed a mixed picture elsewhere. Nigeria placed 16th globally in public finance and 15th in tax policy, reflecting improvements in fiscal management. However, it ranked 69th in both institutional framework and societal framework, underscoring governance and institutional frailties.
Under business efficiency, the country ranked 22nd in the labour market but finished last at 70th in finance, highlighting persistent challenges in access to business financing. Surveyed Nigerian executives identified high borrowing costs (67.6 per cent), exchange rate volatility (67.3 per cent) and inflation (61.2 per cent) as the primary constraints to competitiveness. Other concerns included global uncertainty (48 per cent), supply chain disruptions (33 per cent) and labour constraints (32 per cent). Insecurity, insurgency, banditry, unreliable electricity supply and transport bottlenecks were also cited as structural obstacles.
Despite the competitiveness slide, the ranking coincides with signs of economic recovery. Nigeria’s economy expanded by 4.07 per cent year-on-year in real terms in the fourth quarter of 2025. S&P Global Ratings recently upgraded the country’s long-term foreign and local currency credit ratings to ‘B’ from ‘B-‘, citing federal government economic reforms, improved foreign exchange liquidity, stronger fiscal revenues and rising external reserves. Earlier in the year, S&P had reaffirmed Nigeria’s sovereign rating at ‘B-‘ with a positive outlook, following a November 2025 decision to revise the outlook from stable to positive while maintaining ‘B-/B’ foreign and local currency ratings, reflecting cautious optimism over the ongoing recovery and fiscal reform agenda.
