Nigeria has made significant strides in the latest investment risk ranking for African nations, moving up four spots to secure the eighth position. This advancement is attributed to a series of economic reforms initiated by President Bola Tinubu, which have enhanced the country's appeal to investors, according to a recent report from Bloomberg.

The 2026 Bloomberg Economics Investment Risk-O-Meter assessed 19 African economies and highlighted Nigeria as the biggest climber in the rankings. The nation surpassed Rwanda, Tanzania, Kenya, and Namibia, bolstered by improvements in three key indicators: economic strength, fiscal strength, and external vulnerability. The report noted that Nigeria's ascent is a result of comprehensive reforms aimed at restructuring its fiscal and monetary landscape.

Among the notable reforms implemented by President Tinubu's administration are the removal of the petrol subsidy, adjustments to the foreign exchange market, and modifications to electricity tariffs. These measures, while aimed at addressing systemic economic distortions, have also led to increased living costs for households and businesses, particularly in transportation, food, and energy sectors.

Despite these challenges, Nigeria's economy has shown resilience, with real Gross Domestic Product (GDP) growth rising from 2.54% in the third quarter of 2023 to 3.46% in the fourth quarter. The economy continued to grow, averaging 3.19% in 2024 and reaching 3.85% in 2025, marking its strongest performance during this period. As of the first quarter of 2026, the economy recorded a growth rate of 3.89%, leading to an average quarterly growth of 3.46% from the third quarter of 2023 to the first quarter of 2026.

The government’s efforts to increase revenue and reduce fiscal leakages have been crucial in attracting investment into vital sectors. However, these reforms have coincided with a sharp rise in public debt. Data from the Debt Management Office reveals that Nigeria's total public debt escalated from N87.38 trillion in June 2023 to N159.28 trillion by December 2025, reflecting an increase of approximately 82.3%. This surge in debt is attributed to new borrowings, foreign exchange adjustments, and the securitization of legacy obligations.

Despite the rising debt, Nigeria's improved position in the Bloomberg ranking underscores a positive shift in its investment landscape. Mauritius remains the most investable market in Africa, while Botswana and South Africa have seen declines in their rankings. Investors are now closely monitoring Nigeria's reforms, its debt situation, and the sustainability of its economic growth as the country seeks to solidify its standing as a premier investment destination in Africa.