Nigeria has emerged as the highest-performing African economy in the International Institute for Management Development (IMD) World Competitiveness Ranking 2026 for economic performance, outperforming South Africa, Ghana, Kenya, Namibia and Botswana. However, the country slipped to 68th out of 70 economies in the overall global competitiveness ranking, highlighting persistent structural and institutional challenges.
Key Highlights
- Nigeria ranked highest in Africa for economic performance in the International Institute for Management
- Development World Competitiveness Ranking 2026.
- Country scored 45.2 points, placing 55th globally in the economic performance category.
- Nigeria fell to 68th out of 70 economies in the overall competitiveness ranking.
- Infrastructure remained Nigeria’s weakest pillar, ranking 70th globally.
- Borrowing costs, exchange rate volatility and inflation identified as the biggest business concerns.
- IMD cites insecurity, infrastructure deficits and weak institutions as major obstacles to competitiveness.
The International Institute for Management Development (IMD) assessed 70 economies using four key pillars: economic performance, government efficiency, business efficiency and infrastructure.
The economic performance pillar measures domestic economic activity, international trade and investment, employment levels and price stability.
According to the 2026 report, Nigeria recorded 45.2 points for economic performance, placing 55th globally and ranking ahead of every other African country included in the assessment.
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South Africa ranked second among African economies with 36.27 points, placing 64th globally, while Ghana followed in third position with 34.6 points and a global ranking of 65th.
Kenya placed fourth on the continent with 33.19 points, ranking 66th globally, followed by Namibia with 22.3 points in 68th position. Botswana ranked last among the African countries assessed, scoring 18.25 points and placing 69th worldwide.
The IMD report showed a 26.95-point gap between Nigeria, the highest-ranked African economy for economic performance, and Botswana, the lowest-ranked on the continent.
The ranking comes as the Federal Government continues to implement economic reforms aimed at improving macroeconomic stability, attracting investment and stimulating sustainable growth.
Nigeria Drops in Overall Global Competitiveness
Despite leading Africa in economic performance, Nigeria’s overall competitiveness declined in the International Institute for Management Development World Competitiveness Ranking.
The country slipped one position from the previous year to rank 68th out of 70 economies, with an overall competitiveness score of 38.8 points.
Nigeria also recorded declines across several major competitiveness indicators.
Its ranking for government efficiency dropped from 50th in 2025 to 53rd in 2026, while business efficiency fell from 59th to 63rd.
The country’s weakest performance remained infrastructure, where it ranked 70th, down from 68th in the previous year’s report.
Performance Across Key Indicators
Under the economic performance pillar, Nigeria ranked:
51st in domestic economy
64th in international trade
64th in international investment
61st in prices
64th in employment
Within the government efficiency category, Nigeria performed relatively well in public finance (16th) and tax policy (15th).
However, the country ranked:
69th in institutional framework
58th in business legislation
69th in societal framework
For business efficiency, Nigeria ranked:
65th in productivity and efficiency
22nd in labour market
70th in finance
62nd in management practices
58th in attitudes and values
In the infrastructure pillar, Nigeria ranked:
69th in basic infrastructure
68th in technological infrastructure
63rd in scientific infrastructure
70th in health and environment
70th in education
Business Leaders Identify Key Challenges
The report highlighted the major concerns affecting businesses operating in Nigeria.
Borrowing costs emerged as the leading challenge, cited by 67.6 percent of business executives, followed by:
Exchange rate volatility (67.3%)
Inflation (61.2%)
Global uncertainty (48%)
Supply chain disruptions (33%)
Labour constraints (32%)
The IMD, citing data from Nigeria’s National Productivity Centre, identified insecurity, insurgency and banditry, particularly in agricultural communities, as major constraints to economic competitiveness.
The report also pointed to unreliable electricity supply, inadequate transport infrastructure, macroeconomic instability, weak public institutions, corruption and low human capital development as factors undermining Nigeria’s competitiveness and increasing the cost of doing business.
While Nigeria maintained its leadership position among African peers in economic performance, the report underscored the need for deeper reforms in governance, infrastructure and institutional capacity to improve the country’s global competitiveness.
