Nigeria, once among Africa’s most attractive countries for foreign and domestic investment, has fallen to 18th place in Africa’s latest investment attractiveness ranking, underscoring growing investor caution even as Seychelles and Mauritius emerge as the continent’s top destinations.
The Where to Invest in Africa 2025/2026 index by Rand Merchant Bank shows Nigeria losing ground amid macroeconomic pressures, policy uncertainty and reform related volatility, despite its large market size and long-term potential.
Inflation, currency instability and concerns around policy consistency continue to weigh on investor sentiment.
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In contrast, Seychelles and Mauritius have benefited from stable governance, predictable policies and business-friendly regulatory environments, allowing them to outperform larger economies in attracting capital.
For Nigeria, Africa’s largest economy by GDP, the slide represents a stark shift. Recall, the country consistently ranked within the top 10 destinations for investment; 2024 showed Nigeria ranked ninth by a separate survey.
Experts say Nigeria’s ongoing reforms could improve its standing over time, but note that clearer policy signals, macroeconomic stability and faster execution will be critical if Africa’s largest economy is to regain lost ground in future investment rankings.
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Image Credit: Business Day
