Report: Nigeria Leads Africa’s Economy, Lags in Global Competitiveness

By Kafilat Taiwo

Nigeria has been ranked as the best-performing African economy in the 2026 World Competitiveness Ranking released by the International Institute for Management Development (IMD).

The report assessed 70 economies around the world using four key areas: economic performance, government efficiency, business efficiency, and infrastructure.

Nigeria scored 45.2 points in the economic performance category, placing 55th globally and ahead of the five other African countries included in the ranking.

Economic performance looks at how well a country’s economy is doing. It considers factors such as local business activity, trade with other countries, foreign investments, employment levels, and changes in the prices of goods and services.

Among African countries, South Africa came second with 36.27 points, followed by Ghana (34.6), Kenya (33.19), Namibia (22.3), and Botswana (18.25).

Nigeria finished nearly 27 points ahead of Botswana, the lowest-ranked African country in the category.

Nigeria Still Struggles in Overall Competitiveness

Despite leading Africa in economic performance, Nigeria slipped in the overall global competitiveness ranking. The country dropped one place to 68th out of 70 economies, with an overall score of 38.8, compared to 67th position in 2025.

The IMD said the decline was mainly due to weaknesses in infrastructure, government performance, and the business environment.

Infrastructure, which includes roads, electricity, transport systems, communication networks, and other basic facilities needed for businesses and daily life, remained Nigeria’s weakest area.

The country ranked 70th, the lowest position globally, after falling from 68th in the previous year.

Government efficiency also declined, with Nigeria moving from 50th to 53rd, while business efficiency dropped from 59th to 63rd.

Business efficiency measures how supportive the environment is for companies to grow and operate successfully.

The report also showed some positive results. Nigeria ranked 16th in public finance, which measures how well government finances are managed, and 15th in tax policy, indicating relatively strong tax-related policies.

However, the country performed poorly in areas linked to governance and institutions. It ranked 69th in both institutional framework and societal framework, suggesting ongoing challenges with public institutions, regulations, and the broader social environment.

Within business efficiency, Nigeria ranked 22nd in the labour market, reflecting the availability of workers, but came 70th in finance, highlighting continued difficulties for businesses in accessing affordable funding.

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