Nigeria has emerged as the highest-ranked African economy in the economic performance pillar of the International Institute for Management Development, IMD, World Competitiveness Ranking 2026, outperforming South Africa, Kenya, Ghana, and others on the continent.
The IMD assessment, which covers 70 economies worldwide, measures competitiveness across four broad dimensions: economic performance, government efficiency, business efficiency, and infrastructure.
The economic performance pillar specifically examines domestic economic activity, international trade and investment, employment, and price levels.
With a score of 45.2 points, Nigeria placed 55th globally in this category, ahead of the five other African nations evaluated.
South Africa followed in 64th place with 36.27 points, Ghana ranked 65th at 34.6 points, and Kenya came 66th with 33.19 points.
Namibia, 68th, 22.3 points, and Botswana, 69th, 18.25 points, rounded out the continent’s representation.
The gap between Nigeria, the continent’s leader in this pillar, and bottom-placed Botswana stands at 26.95 points. The result comes as the federal government pursues wide-ranging reforms aimed at stabilising the economy.
Despite this bright spot, Nigeria’s overall global competitiveness weakened.
The country fell one position to 68th out of 70 economies surveyed, posting an aggregate score of 38.8.
Its performance dipped across several key pillars: government efficiency dropped from 50th to 53rd, business efficiency slid from 59th to 63rd, and infrastructure fell from 68th to last place, 70th.
A closer look at the sub-indicators reveals mixed results. Under economic performance, Nigeria ranked 51st in domestic economy, 64th in both international trade and international investment, 61st in prices, and 64th in employment.
In government efficiency, the country performed relatively well in public finance, 16th and tax policy, 15th, but struggled in institutional framework, 69th, business legislation, 58th, and societal framework, 69th.
Business efficiency scores included 65th in productivity and efficiency, a strong 22nd in the labour market, 70th in finance, 62nd in management practices, and 58th in attitudes and values.
Infrastructure remained a major weakness: Nigeria placed 69th in basic infrastructure, 68th in technological infrastructure, 63rd in scientific infrastructure, and 70th in both health and environment and education.
The report also spotlighted the primary concerns of business executives in Nigeria.
High borrowing costs topped the list at 67.6 per cent, closely followed by exchange rate volatility with 67.3 per cent and inflation at 61.2 per cent.
Global uncertainty was reported at 48 per cent, while supply chain disruptions was at 33 per cent, and labour constraints stood at 32 per cent.
Citing data from Nigeria’s National Productivity Centre, the IMD identified insecurity, insurgency, and banditry, especially in the agricultural belt, as critical impediments to competitiveness.
It further pointed to infrastructure deficits, including unreliable electricity and transport bottlenecks, which inflate the cost of doing business.
Macroeconomic instability, elevated inflation, weak public institutions, corruption, and low human capital development continue to weigh on the nation’s overall competitiveness, the report noted.
