Nigeria falls to 18th place in RMB’s ‘Where to Invest in Africa’ report

Nigeria has dropped to 18th place in the latest Where to Invest in Africa 2025 report, jointly released by Rand Merchant Bank (RMB) and the Gordon Institute of Business Science (GIBS). The report ranks 31 African economies based on investment attractiveness, highlighting Seychelles and Mauritius as the continent’s leading destinations.

According to the report, Seychelles ranks first, owing to its high levels of personal freedom, human development, and macroeconomic stability. Mauritius follows closely, supported by a reputation for innovation, strong governance, and a well-regulated investment environment.

Rounding out the top five are Egypt (3rd), South Africa (4th), and Morocco (5th), all large, diversified economies offering substantial market opportunities despite varying structural challenges.

Nigeria fell to 18th place, taking nine steps downwards from its position in 2024. This follows a major currency devaluation that caused it to lose its position as the continent’s largest economy by Gross Domestic Product (GDP). The report cites the country’s overdependence on oil exports, which accounts for nearly 70% of trade flows, as a major constraint on economic complexity and resilience.

Political instability and policy uncertainty continue to deter investors, yet Nigeria remains a compelling long-term prospect. Its improving ease of doing business, expanding digital economy, and young workforce provide grounds for cautious optimism.

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“Nigeria case contains lessons… the report notes. First, data is only as good as its collection and calculation methods. Second, the numbers do not always reflect reality.” That said, Nigeria is an exception that proves the robustness of the WTIIA model. The majority of scores moved gradually from year to year in ways that economic logic can help to explain.”

The results show that size alone does not guarantee success. Seychelles and Mauritius, both small economies performance offer an important lesson for bigger nations: economic reform, innovation, and consistent policies attract investors more effectively than population numbers or natural resources.

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