The assessment comes as the country continues to implement economic reforms introduced since President Bola Tinubu took office in 2023. Among the major changes have been the removal of the petrol subsidy, reforms to the foreign-exchange market and changes to electricity tariffs.

The reforms were designed to address long-standing economic challenges, although they have also brought significant pressure on households and businesses, particularly through higher living costs and inflation.

Economic growth improves

Nigeria’s economy has continued to record positive growth during the period covered by the assessment.

According to figures reported alongside the Bloomberg ranking, real GDP growth averaged 3.19 per cent in 2024 and increased to 3.85 per cent in 2025. The economy then recorded growth of 3.89 per cent in the first quarter of 2026.

BusinessDay also reported that Nigeria’s economy grew by 4.43 per cent year-on-year in the second quarter of 2026, citing National Bureau of Statistics figures.

These figures point to an expansion in economic activity, although the benefits of that growth remain an important issue for households and businesses.

Debt remains a major concern

Despite Nigeria’s improved position in the investment-risk ranking, the country continues to face significant fiscal challenges.

Data from the Debt Management Office showed that Nigeria’s total public debt stood at ₦87.38 trillion in June 2023. By December 2025, the figure had increased to ₦159.28 trillion. The increase has been linked to new borrowing, exchange-rate effects and the securitisation of some outstanding obligations.

This means the improved ranking should not be interpreted as an indication that Nigeria’s economic problems have disappeared.

Nigeria still faces structural challenges

The Bloomberg assessment also highlights areas where Nigeria continues to face difficulties.

A separate analysis of the ranking noted that Nigeria’s performance remained weaker in areas including institutions and infrastructure, showing that improvements in some economic indicators have not eliminated broader structural problems.

For investors, issues such as infrastructure, regulatory certainty, access to foreign exchange and the cost of doing business remain important considerations.

What the ranking means

Nigeria’s movement to eighth position gives the country a stronger relative position compared with several other major African economies.

However, an improved position on an investment-risk ranking does not necessarily mean that investing in Nigeria is risk-free. It is a relative assessment, comparing the performance and risks of the economies included in the study.

For Nigeria, the challenge will be to maintain the improvements recorded in economic and fiscal indicators while addressing the issues that continue to affect businesses and ordinary citizens.

The latest ranking therefore offers a mixed picture: Nigeria is showing stronger performance in some key economic indicators, but significant challenges remain before those gains can translate into broader improvements in living standards and the business environment.