FIJ
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.
