Nigeria has climbed four places to rank eighth among 19 African economies assessed in the latest Bloomberg Economics Investment Risk-O-Meter.
The development makes Nigeria the biggest climber in the latest ranking, with the country moving up from 12th position recorded in the previous assessment.
According to the latest Bloomberg assessment, Nigeria’s improved position was driven by gains in economic strength, fiscal strength and external vulnerability, three of the five indicators used in measuring investment risk.
Nigeria overtook Rwanda, Tanzania, Kenya and Namibia in the latest ranking.
Mauritius emerged as the most investable African economy, ahead of South Africa, according to the assessment.
The improved ranking comes against the backdrop of economic reforms implemented by the administration of President Bola Tinubu, including measures aimed at strengthening government finances, improving macroeconomic stability and reducing external vulnerabilities.
The ranking is significant for Nigeria as the government continues efforts to attract foreign and domestic investment amid concerns over inflation, exchange-rate stability, public finances and the overall business environment.
Bloomberg’s assessment measures the relative investment attractiveness and risks of African economies using five broad indicators.
While Nigeria recorded improvements in three areas, the ranking also highlights that challenges remain before the country can move closer to the continent’s leading investment destinations.
The latest position nevertheless represents a notable improvement from 12th place and could strengthen Nigeria’s efforts to project itself as a more attractive destination for investors.
The government will now face the challenge of translating the improved macroeconomic indicators into stronger investor confidence, increased capital inflows and broader economic benefits for businesses and households.
