Nigeria slid to 18th position in Rand Merchant Bank’s (RMB) Where to Invest in Africa index (WTIIA) report for 2025/2026.
The report, themed ‘From Aid to Investment and Trade, offered insights into the continent’s top investment prospects.
“The country’s precipitous fall from 9th to 18th in the WTIIA rankings suggests that the term ‘wahala’ has been used liberally over the last year,” it stated.
According to the report, a year of “Wahala” cost Nigeria nine spots in its latest investment ranking.
It explained “Wahala” as a word rich with meaning in Nigerian culture, stressing that its strict translation as “trouble”, “problem”, or “difficulty” in English loses much of the word’s cultural dimension.
“The country’s precipitous fall from 9th to 18th in the WTIIA rankings suggests that the term ‘wahala’ has been used liberally over the last year,” the report stated.
The Where to Invest in Africa index report provides a clear view of the factors shaping each country’s investment landscape.
It helps investors and policymakers identify where the greatest opportunities for growth and impact lie.
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“Over the past year, Africa’s investment landscape has been shaped by significant political and policy developments.
It said elections across multiple countries, episodes of unrest and policy uncertainty, and the global fracturing and reorientation have all had measurable macroeconomic effects.
“Changes in the political and the subsequent policy environment and declining foreign aid, coupled with the redirection of global capital flows, are reshaping how African economies engage with the world, moving from dependence toward resilience and self-determination,” the Chief Economist at RMB, Isaah Mhlanga, said.
Top 5 countries
The top five countries maintained their rankings in 2024/2025.
Seychelles and Mauritius retained their rankings of first and second place, with their scores reflecting small but appealing markets.
Egypt, South Africa, and Morocco retained third, fourth, and fifth places, respectively.
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In contrast to the top five countries, there were a few countries that experienced significant downward shifts in the rankings.
Why Nigeria drops 9 spots
It noted Nigeria as the biggest mover, dropping nine places from ninth in the previous edition to 18th this year, but acknowledged that the country’s outlook remains positive.
The ranking, according to RMB, reflects a high score in terms of economic performance and potential, but the pillars that were influenced by currency devaluation had a disproportionate impact.
It said the decline largely reflects short-term adjustments linked to necessary economic reforms, including the transition to a more flexible currency and efforts to manage fuel subsidies better.
It added that while the measures created temporary volatility, they represent important steps towards a more sustainable and market-responsive economy.
The rebasing of the gross domestic product and consumer price index also provided a clearer picture of Nigeria’s economic fundamentals.
“The move to a more flexible currency and the attempted reining in of fuel subsidies have caused their share of economic pain, including inflation, for Africa’s most populous country. However, the IMF growth forecast of between 3.0% and 3.3% to 2029 suggests panic is undue,” RMB added.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
