Nigeria has experienced a decline in its investment attractiveness ranking within Africa, according to the latest Where to Invest in Africa 2025/2026 report released by Rand Merchant Bank in partnership with the Gordon Institute of Business Science.
The report ranks 31 African economies based on factors such as macroeconomic performance, market accessibility, innovation, and overall stability. In the most recent ranking, Nigeria fell to 18th place, dropping nine positions compared with the previous year.
At the top of the index, Seychelles and Mauritius retained their positions as Africa’s most attractive investment destinations. These smaller economies have been praised for their stable macroeconomic environments, strong governance structures, and favorable business climates that attract international investors.
Analysts say Nigeria’s drop in ranking reflects several economic challenges, including currency volatility, rising inflation, and the impact of recent economic reforms that have affected investor confidence. The country’s heavy reliance on oil exports—responsible for a large share of trade flows—also limits economic diversification and resilience.
Despite the decline, Nigeria remains one of Africa’s largest markets due to its population size, natural resources, and growing digital economy. Major cities such as Lagos continue to serve as important financial and technology hubs in West Africa, hosting multinational corporations, financial institutions, and fast-growing technology startups.
Economic experts believe that continued structural reforms, improved infrastructure, and greater policy stability could help Nigeria regain its competitiveness as an investment destination. If these improvements are sustained, analysts say the country could strengthen its position in future African investment rankings while attracting more foreign direct investment across key sectors such as technology, energy, manufacturing, and agriculture.
