Nigeria has emerged as Africa’s highest-performing economy on the economic performance pillar of the International Institute for Management Development (IMD) World Competitiveness Ranking 2026, outperforming five other African countries assessed in the report.
Despite this achievement, the country ranked 68th out of 70 economies in the overall competitiveness index, highlighting the persistent impact of infrastructure deficits, institutional weaknesses and macroeconomic challenges on its business environment.
The IMD evaluated 70 economies using four broad indicators: economic performance, government efficiency, business efficiency and infrastructure.
According to the report, Nigeria scored 45.2 points on the economic performance pillar, ranking 55th globally and placing first among the six African countries included in the assessment.
South Africa followed with 36.27 points (64th globally), while Ghana ranked third with 34.6 points (65th). Kenya recorded 33.19 points (66th), Namibia 22.3 points (68th), and Botswana 18.25 points (69th).
The report noted a 26.95-point gap between Nigeria, the continent’s top performer, and Botswana, the lowest-ranked African economy in the category.
The economic performance pillar assesses domestic economic activity, international trade and investment, employment, and price developments.
While Nigeria led Africa in economic performance, its overall competitiveness weakened compared with last year.
The country slipped to 68th position from 67th in 2025, with an overall score of 38.8.
Government efficiency dropped to 53rd from 50th, while business efficiency fell to 63rd from 59th.
Infrastructure remained Nigeria’s weakest area, ranking 70th globally, down from 68th in the previous year.
On the economic performance sub-indicators, Nigeria ranked:
- 51st in domestic economy
- 64th in international trade
- 64th in international investment
- 61st in prices
- 64th in employment
The report also highlighted contrasting performances across other indicators. Nigeria ranked 16th in public finance and 15th in tax policy but fell to 69th in both institutional framework and societal framework.
Within business efficiency, Nigeria placed 22nd in labour market performance but ranked 70th in finance, underscoring persistent difficulties in access to capital.
According to the IMD, Nigerian business executives identified high borrowing costs, exchange rate volatility and inflation as the biggest obstacles to competitiveness.
Borrowing costs topped the list, cited by 67.6 per cent of respondents, followed closely by exchange rate volatility at 67.3 per cent and inflation at 61.2 per cent.
Other concerns included global economic uncertainty (48 per cent), supply chain disruptions (33 per cent), labour constraints (32 per cent), insecurity, unreliable electricity supply and transport bottlenecks.
The report concluded that although Nigeria outperformed its African peers on economic performance, sustained structural reforms, particularly in infrastructure, institutions and the cost of doing business—remain critical to improving the country’s overall global competitiveness.
