Nigeria Ranked ‘Critical’ on 2025 Instability Risk Index Amid Rising Economic and Political Pressures

Nigeria has been placed in the “critical” category on SBM Intelligence’s 2025 Instability Risk Index, scoring 52 out of 100 points. The report, released on Monday, underscores growing concerns about the country’s governance, economic management, and security environment, signaling potential risks for investors and policymakers alike.

SBM Intelligence, an Africa-focused market and security intelligence firm, highlighted that Nigeria’s fragile institutional and economic frameworks, coupled with rising insecurity and political tensions, could undermine long-term stability. The assessment evaluates four key risk clusters—Leadership and Governance, Economy, Geopolitics, and History—with Nigeria scoring particularly low in governance and economic indicators.

Economic pressures continue to weigh heavily on Nigerians, the report noted. Rising living costs, the removal of petrol subsidies, and currency adjustments have pushed many citizens into hardship, forcing some businesses to close. Despite slight improvements in GDP, widespread poverty and inflation remain pressing challenges, making the path to economic recovery precarious.

Political instability also persists, fueled by lingering divisions from the 2023 elections. While ongoing reforms and institutional continuity have prevented further collapse, SBM Intelligence describes Nigeria’s trajectory as a “precarious path of slow recovery,” highlighting both progress and ongoing vulnerabilities that require urgent attention.

Regionally, Nigeria’s ranking reflects broader African instability, with conflicts in Sudan, the M-23 crisis in Rwanda and Congo, and insurgencies across West Africa influencing the continental risk landscape. Experts warn that unless urgent, coordinated reforms are implemented, rising insecurity and economic pressures could erode confidence among citizens, investors, and international partners.

source: The Sun