Nigeria Leads Africa in IMD Economic Performance Ranking Despite Competitiveness Challenges

Nigeria has been ranked as the highest-performing economy in Africa on the economic performance pillar of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, reinforcing the country’s growing economic resilience despite lingering structural challenges. The report placed Nigeria 55th globally in economic performance with a score of 45.2, ahead of all other African countries included in the assessment.

The IMD ranking evaluated 70 economies worldwide across four key pillars: economic performance, government efficiency, business efficiency, and infrastructure. Nigeria outperformed South Africa, Ghana, Kenya, Namibia, and Botswana on the economic performance index, recording a substantial lead over its continental counterparts. South Africa followed with 36.27 points, while Ghana and Kenya ranked closely behind, highlighting Nigeria’s relative strength in areas such as domestic economic activity, trade, investment, employment, and price stability.

Despite this achievement, Nigeria’s overall competitiveness ranking slipped to 68th position out of 70 economies, down from 67th in 2025. The decline was driven largely by persistent weaknesses in infrastructure, government efficiency, and business operations. Infrastructure remained the country’s poorest-performing area, where Nigeria ranked last globally, underscoring the urgent need for investment in power supply, transportation networks, and digital connectivity to support sustainable economic growth.

The report also revealed a mixed performance across several indicators. Nigeria ranked strongly in public finance and tax policy, placing 16th and 15th globally, respectively. However, it recorded weak scores in institutional and societal frameworks, while access to finance remained a major concern for businesses. Business executives surveyed by the IMD identified high borrowing costs, exchange rate volatility, and inflation as the most significant obstacles affecting competitiveness and investment decisions across the country.

Analysts say the ranking reflects both the progress and challenges facing Africa’s largest economy. Recent economic reforms, stronger foreign exchange liquidity, and improving fiscal revenues have contributed to Nigeria’s positive economic outlook. The country’s economy expanded by 4.07 percent in the fourth quarter of 2025, while S&P Global Ratings recently upgraded Nigeria’s credit rating, citing improved macroeconomic conditions. However, experts stress that continued reforms, improved infrastructure, enhanced security, and a lower cost of doing business will be critical if Nigeria is to translate its economic performance into stronger global competitiveness in the years ahead.

source: nairametrics