Nigeria has fallen to 18th position in the latest Where to Invest in Africa 2025 report, published by Rand Merchant Bank (RMB) and the Gordon Institute of Business Science (GIBS).
The report ranks 31 African countries based on how attractive they are to investors.
Seychelles took the top spot this year because of its strong economy, political stability, and high standard of living.
Mauritius came second, known for its innovation, good governance, and well-regulated business environment.
Egypt, South Africa, and Morocco made up the rest of the top five.
These countries have large and diverse economies that offer many opportunities, despite some economic challenges.
Nigeria dropped nine places from its 2024 ranking after a major currency devaluation, which made it lose its title as Africa’s biggest economy by GDP.
The report pointed out that Nigeria’s heavy reliance on oil — which makes up about 70% of its trade limits its economic growth and diversity. Political instability and unpredictable government policies also make investors cautious.
However, the report noted that Nigeria still has long-term potential. Improvements in the ease of doing business, the growth of its digital economy, and a young, energetic population give reasons for hope.
loThe study also emphasized that a country’s size or population alone does not guarantee success. Smaller nations like Seychelles and Mauritius show that steady reforms, innovation, and consistent policies attract investors more effectively than natural resources or market size.