Nigeria has achieved a notable position as the ninth most attractive investment destination in Africa, according to recent evaluations by various financial and economic sources. This ranking reflects Nigeria’s considerable economic potential and performance despite facing several challenges that affect its investment appeal.
In 2024, Nigeria’s instability scorecard stood at 0.163, positioning it ninth out of 31 African nations assessed by Rand Merchant Bank (RMB). This score represents a slight decline from the previous year’s score of 0.15. The report indicates that Nigeria’s investment attractiveness is influenced by its economic complexity and political stability. The country’s heavy reliance on oil exports and a complex political environment contribute to its lower ranking.
While Nigeria ranks second in economic performance and potential, it lags in market accessibility and innovation, where it is ranked 29th. The nation’s economy is substantial, with a GDP of $375 billion and a population exceeding 220 million, making it the largest economy on the continent. However, Nigeria’s business environment remains challenging due to political instability and infrastructural deficits.
The report highlights improvements in Nigeria’s Ease of Doing Business index, with the country advancing from 169th to 131st place in the 2020 edition. This progress indicates a gradual enhancement in the investment climate, although Nigeria continues to face obstacles in market accessibility and innovation.
Despite a 27% decline in total foreign capital—from $5.33 billion in 2022 to $3.91 billion in 2023—Nigeria witnessed a notable increase in foreign capital inflows in the first quarter of 2024, reaching $3.37 billion. This mixed foreign investment landscape underscores Nigeria’s potential and ongoing challenges.
Overall, Nigeria’s ranking as the ninth most promising investment destination in Africa underscores its significant economic opportunities. Addressing issues related to market accessibility, innovation, and political stability is crucial for Nigeria to enhance its investment climate and attract more foreign investment, driving sustained economic growth.