Published 3rd Sep, 2024

By Timileyin Akinmoyeje

Despite being the fifth most populous nation and having the seventh largest labour force, Nigeria ranked second to last in economic performance, according to the International Institute for Management Development’s (IMD) 2024 World Competitiveness Index.

Out of 67 countries evaluated, Nigeria ranked 66th in economic performance. The country also fared poorly in other key areas: Nigeria ranked 66th in infrastructure development, 54th in government efficiency and 58th in business efficiency.

The IMD index, published in June, evaluated countries based on four broad categories: economic performance, government efficiency, business efficiency and infrastructure.

For more specific indicators, Nigeria’s performance was even more concerning. It ranked last in pricing, health and environment, and education, trailing behind all other 67 countries, including Ghana.

In other areas, Nigeria ranked 64th in international investment, institutional framework, and finance, showing its struggles in maintaining a stable economic and regulatory environment.

Social unrest, governance, weak public institutions, poor service delivery, corruption, and insecurity were some of the reasons for this poor result, according to the National Productivity Centre.

However, there were a few bright spots. Nigeria ranked 14th in tax policy and 19th in public finance.

Recent local indices confirm the results of the IMD’s evaluation of the Nigerian economy. For instance, headline inflation in Nigeria has been on full throttle since 2022, peaking at a 28-year high in June.

The inflation only recently eased in July to 33.8%, according to the Nigeria Bureau of Statistics. Despite the ease in July, core inflation remained on the conspicuously high side relative to previous years.

In the most recently published Labour Force Data, Nigeria’s unemployment rate ballooned to 5% from 4.2%. About 84% of the employed people, however, operate in informal and semi-formal sectors and are self-employed. A sizeable 13.7% of the labour force is not employed, not in education and not in training.

Foreign Direct Investment (FDI) has also taken a hit, with many multinationals pulling out of Nigeria. This, according to a Business Day report, led to a 35% drop in FDI in June.

Consumer confidence is also low; the latest Central Bank of Nigeria (CBN) report shows a negative confidence score of -9.1 points.

Adding to these woes, Nigeria ranked 145th out of 180 countries on Transparency International’s Corruption Perception Index, suggesting a palpably high level of corrupt practices and perception.

Since taking office in 2023, President Bola Tinubu has introduced several economic reforms and interventions. However, the recent figures suggest that these measures have yet to yield significant improvements in the country’s economy.

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One reply on “REPORT: Nigeria Ranks 66 Out of 67 Countries in Economic Performance”

Most of the data used to arrive at these seemingly ridiculous conclusions are unreliable We need to focus inwardly for us to develop Look at areas of our comparable cost advantage and work at energizing them Our problems stem from the ignoble habit of searching for loans which put us at risks most of the time Let us try to engender wealth and progress by looking inwardly