Tinubu Reforms Propel Nigeria Up African Investability Index

Nigeria has emerged as the biggest climber in the 2026 Bloomberg Economics Investment Risk-O-Meter, advancing four places to rank eighth among Africa’s most investable markets.

The index, published in the latest edition of An Investor’s Guide to Africa, highlights the structural impact of President Bola Ahmed Tinubu’s economic reform program since taking office in 2023.

The scorecard—which evaluates 19 major African economies across five fundamental pillars—recorded notable improvements in Nigeria’s economic strength, fiscal strength, and external vulnerability.

By advancing to eighth place, Africa’s top oil producer and refining hub surpassed regional peers including Kenya, Namibia, Rwanda, and Tanzania.

Since taking office in 2023, Tinubu, who’s seeking a second term in elections scheduled for January, has removed a costly gasoline subsidy, liberalized the foreign-exchange market and introduced electricity tariffs designed to reduce chronic losses in the power sector.

Key Market Dynamics & Policy Anchors

• Structural Policy Catalysts: The four-place jump validates three key policy shifts enacted under the Tinubu administration: the full removal of PMS gasoline subsidies, the unification and liberalization of the foreign-exchange market, and the implementation of cost-reflective electricity tariffs to reduce systemic losses in the power sector.

• Macro Buffer & External Position: The rating upgrade aligns with the Central Bank of Nigeria’s (CBN) aggressive monetary policy recalibration (cutting the MPR 350 bps to 23.00%) and gross external reserves holding near an 18-year peak of $53.9 billion–$55 billion, which significantly curbed sovereign default and currency risk premiums.

• Continental Rebalancing: Shifts in the 19-country index reflect broader economic realignments across Sub-Saharan Africa. Mauritius assumed the #1 overall spot, while former leader South Africa slipped to second place due to weaker growth forecasts, and Botswana dropped two spots.

• Pre-Election Reforms Backdrop: The investability surge arrives as political focus turns toward the upcoming general elections, with market participants weighing the durability of fiscal discipline against election-year spending pressures.