Nigeria Rises to Eighth Most Investable African Market on Tinubu Reforms

By Adedapo Adesanya

Nigeria has risen four places to rank as the eighth most investable market in Africa, driven by improvements in economic growth, fiscal strength and its external position under President Bola Tinubu’s economic reforms.

The ranking, contained in the 2026 Bloomberg Economics Investment Risk-O-Meter, placed Nigeria ahead of Rwanda, Tanzania, Kenya and Namibia. Mauritius emerged as Africa’s most investable market, while South Africa, which led the ranking last year, dropped one place due to weaker growth prospects.

Nigeria was the biggest climber among the 19 African economies assessed.

The improvement came as the country recorded stronger economic growth and an improved external position following the rebasing of its Gross Domestic Product (GDP), according to Ms Yvonne Mhango, an Africa economist, cited by the publication.

“Nigeria is the standout mover. The rebasing of gross domestic product, stronger growth and an improved external position have lifted its macro credentials substantially. But weak institutions and infrastructure remain important constraints,” Ms Mhango said.

Since taking office in 2023, President Tinubu has introduced a series of reforms aimed at reducing government spending, attracting investment and strengthening the economy.

One of the major measures was the removal of the petrol subsidy, which had kept fuel prices artificially low but placed a heavy burden on government finances. The administration also liberalised the foreign exchange market in an effort to allow the Naira’s value to be more determined by market forces and improve dollar liquidity.

The government has also introduced higher electricity tariffs for some consumers, particularly those supplied by power distributors with better service, as part of efforts to reduce losses in the power sector and attract investment into electricity generation and distribution.

The reforms have, however, contributed to higher living costs, particularly through increased petrol and electricity prices, while weak infrastructure and institutions remain challenges for investors.

The World Bank and the International Monetary Fund (IMF) have called on the federal government to step up its intervention as the reforms have not fully trickled down.

Other notable movers in the ranking included Botswana, which fell two places, while South Africa dropped one position to second, and Mauritius took the top position in the latest ranking.