Nigeria has emerged as Africa’s best-performing economy in the International Institute for Management Development (IMD) World Competitiveness Ranking 2026. The country outperformed South Africa, Ghana, Kenya, Namibia and Botswana in the report’s economic performance category.
Nigeria scored 45.2 points and ranked 55th globally in that pillar. South Africa followed with 36.27 points, while the other African countries finished behind. The result shows that Nigeria is making progress in some key economic areas despite ongoing challenges.
However, the good news comes with a setback. Nigeria dropped one place in the overall global competitiveness ranking. The country moved from 67th in 2025 to 68th out of 70 economies in 2026. According to the IMD report, poor infrastructure, macroeconomic instability and weak institutions continue to slow growth.
Nigeria’s infrastructure ranking also fell to 70th globally, making it the weakest area of the economy. As a result, the country still faces major obstacles to becoming more competitive.
The report also revealed what business leaders see as the biggest problems. High borrowing costs topped the list at 67.6%. Exchange rate volatility followed with 67.3%, while inflation stood at 61.2%.
In addition, insecurity, poor electricity supply and transport challenges remain serious concerns. These issues continue to increase the cost of doing business across the country. Consequently, many businesses struggle to grow and compete effectively.
Despite these challenges, Nigeria recorded strong results in several important areas. The country ranked 16th in public finance, 15th in tax policy and 22nd in labour market performance. These strengths suggest that the economy has solid foundations to build on.
The IMD concluded that Nigeria can improve its global position through sustained reforms. Better infrastructure, stronger institutions and lower business costs will be key. If these issues are addressed, Nigeria could move much higher in future global competitiveness rankings.
