-
Nigeria rose four places to eighth in Bloomberg Economics’ 2026 Investment Risk-O-Meter, the biggest climb among the African economies assessed.
-
The improvement was driven by stronger performance in economic strength, fiscal strength and external vulnerability, according to Bloomberg.
-
The upgrade comes alongside stronger economic growth but a substantial rise in public debt, highlighting the mixed investment picture facing the country.
October 6, (THEWILL) – Nigeria has emerged as the biggest climber in Africa’s latest investment risk ranking, rising four places to eighth as improvements in economic and fiscal indicators strengthened its relative position among the continent’s investment destinations.
The development was reported in Bloomberg Economics’ 2026 Investment Risk-O-Meter, which assesses the relative investability of 19 African economies.
Nigeria overtook Rwanda, Tanzania, Kenya and Namibia in the latest ranking, with Bloomberg attributing the improvement to stronger performance in three of the five indicators used in its assessment: economic strength, fiscal strength and external vulnerability.
Bloomberg linked Nigeria’s rise to economic reforms implemented under President Bola Tinubu, including changes to the foreign exchange market, petrol pricing and electricity tariffs.
Mauritius emerged at the top of the latest ranking, while Botswana fell two places. South Africa, which led the previous edition, dropped one place amid a weaker economic growth outlook.
Growth Improves As Reforms Reshape Economy
Nigeria’s improved position comes more than three years after the Tinubu administration began implementing major economic reforms aimed at changing the country’s fiscal and monetary framework.
Among the most significant measures were the removal of the petrol subsidy, foreign exchange market reforms and changes to electricity tariffs.
The reforms have been presented by the Federal Government as measures designed to correct long-standing distortions, strengthen public finances, improve market transparency and attract investment.
The adjustment, however, comes with high costs for households and businesses, particularly through higher transport, food and energy expenses.
Against that backdrop, economic growth has continued to strengthen compared with the period immediately after the reforms began.
Nigeria’s real GDP growth stood at 3.89 percent year-on-year in the first quarter of 2026, up from 3.13 percent in the corresponding quarter of 2025, according to the National Bureau of Statistics. The Q1 2026 performance, however, was slower than the 4.07 percent recorded in the fourth quarter of 2025.
The latest expansion was supported by improvements across agriculture, industry and other parts of the non-oil economy. The services sector remained the largest contributor to real GDP, accounting for 57.73 percent in the first quarter.
The growth performance is one of the indicators that has strengthened the case for Nigeria’s improving relative position in the Bloomberg assessment.
READ ALSO:
Debt Remains Key Investment Consideration
Nigeria’s improved ranking, however, comes alongside a substantial increase in its public debt stock, creating another dimension for investors assessing the sustainability of the country’s economic adjustment.
Data from the Debt Management Office show that total public debt stood at ₦87.38 trillion as of June 30, 2023. The figure had risen to ₦159.28 trillion by December 31, 2025.
That represents an increase of about ₦71.90 trillion, or 82.3 percent, over the period.
The DMO’s June 2023 disclosure noted that the debt stock included ₦22.71 trillion in securitised Ways and Means advances, alongside new domestic and external borrowings.
By December 2025, the debt stock had risen further from ₦153.29 trillion recorded at the end of September, with the increase reflecting additional borrowing and exchange-rate effects, among other factors.
The Federal Ministry of Finance has also acknowledged that debt-service costs remain a significant fiscal constraint, despite the government’s position that the debt remains sustainable relative to the size of the rebased economy.
For investors, the combination of improving growth indicators and a heavier debt burden means Nigeria’s improved ranking does not eliminate the structural issues that have historically affected its investment appeal.
Reforms Target Long-Standing Investment Barriers
The foreign exchange reforms were designed to reduce distortions associated with multiple exchange rates and allow greater market determination of the naira, while the removal of the petrol subsidy was intended to reduce the government’s fiscal burden.
Electricity tariff reforms, meanwhile, were to improve the financial viability of the power sector and create greater incentives for investment by allowing tariffs for certain customer categories to better reflect supply costs.
The reforms have also been accompanied by efforts to improve government revenue, strengthen fiscal management and attract capital into sectors considered critical to economic expansion.
For Nigeria, the latest Bloomberg ranking therefore represents an improvement in its relative standing among African investment markets, rather than an end to the risks that investors continue to monitor.
The key test will be whether stronger growth, improved external conditions and fiscal reforms can be sustained while the government manages debt-service pressures, inflation, infrastructure gaps and the cost of living.
Nigeria’s four-place climb suggests that some of the country’s underlying investment indicators have improved relative to its African peers. The continued challenge will be converting that improvement in relative risk perception into sustained private investment and broader economic gai
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
