Business
Nigeria Ranks 10th On African Governance Index
Nigeria is one of 10
countries in Africa that have improved across all four sub-categories of Sustainable Economic Opportunity category, the 2016 Ibrahim Index of African Governance (IIAG) has revealed.
The index, which was launched by the Mo Ibrahim Foundation in Abuja, also ranked Nigeria 36th out of 54 countries in “Overall Governance’’ with a score of 46.5 points from 100.
The index, the 10th edition, is the most comprehensive analysis of African governance undertaken to date, and has brought together data to assess each of Africa’s 54 countries against 95 indicators drawn from 34 independent sources.
It indicated that the country’s score had improved by +2.5 points over the last 10 years.
The statistics, however, showed that Nigeria had the second most deteriorated score in the “National Security’’ sub-category, having declined by -28.6 points over the course of the decade.
It revealed that improvement in overall governance in Africa over the period had been held back by widespread deterioration in “Safety and Rule of Law’’ category.
“Over the last decade, overall governance has improved by one score point at the continental average level, with 37 countries, home to 70 per cent of African citizens, registering progress.
“This overall positive trend has been led mainly by improvement in Human Development and Participation & Human Rights.’’
The index showed that Sustainable Economic Opportunity also registered an improvement, but at a slower pace.
However, it said that the positive trends contrasted with pronounced drop in Safety and Rule of Law, which 33 countries in Africa, home to almost two-thirds of the continent’s population, had experienced a decline since 2006.
“This worrying trend has worsened recently, with almost half of the countries on the continent recording their worst score ever in this category within the last three years.
“This is driven by large deterioration in the sub-categories of Personal Safety and National Security.
“Notably, accountability is now the lowest scoring sub-category of the whole index,’’ it said.
The report said that without exception, all countries that had deteriorated at the Overall Governance level had also deteriorated in Safety and Rule of Law.
It added that the improvement in the Participation and Human Rights category, found in 37 countries across the continent, had been driven by progress in Gender and in Participation.
“However, a marginal deterioration appears in Right sub-category, with some worrying trends in indicators relating to the civil society space.
“Sustainable Economic Opportunity is the IIAG’s lowest scoring and slowest improving category. However, 38 countries – together accounting for 73 per cent of continental Gross Domestic Product (GDP) – have recorded an improvement over the last decade.
“The largest progress has been achieved in the sub-category of Infrastructure, driven by a massive improvement in Digital & Information Technology infrastructure, the most improved of all 95 indicators. “However, the average score for Infrastructure still remains low, with electricity registering a particularly worrying decline in 19 countries, home to 40 per cent of Africa’s population.
“Human Development is the best performing category over the last decade, with 43 countries – home to 87 per cent of African citizens. registering progress.
“All dimensions – Education, Health and Welfare – have improved, although progress in the sub-category of Welfare has been affected by declines in Social Exclusion and Poverty Reduction Priorities indicators,’’ it stated. Speaking during the ceremony, Mo Ibrahim, Chairman of Mo Ibrahim Foundation said: “the improvement in overall governance in Africa over the last decade reflects a positive trend in a majority of countries and for over two-thirds of the continent’s citizens.
“No success, no progress can be sustained without constant commitment and effort.
“As our Index reveals, the decline in safety and rule of law is the biggest issue facing the continent today. “ Sound governance and wise leadership are fundamental to tackling this challenge, sustaining recent progress and ensuring that Africa’s future is bright.’’
The Mo Ibrahim Foundation was established in 2006 with a focus on the critical importance of leadership and governance in Africa, by providing tools to assess and support progress in leadership and governance.
Business in Nigeria remain under pressure as a result of insecurity and erratic power supply which continue to stifle productivity in the country.
This is even as new data from the Central Bank of Nigeria (CBN) indicate sustained improvements in economic activity.
This was the response of businesses in the CBN’s October 2025 Business Expectations Survey (BES) and the Purchasing Managers’ Index (PMI) report.
While the PMI showed that economic activity expanded for the 11th consecutive month, the BES revealed that businesses are still grappling with crippling operational constraints that threaten to reverse recent macroeconomic gains.
According to the BES conducted between October 6 and 10, firms identified insecurity (71.8 points) as the most critical challenge affecting operations nationwide. This was closely followed by insufficient power supply (70.9 points), multiple taxation (70.2 points), high interest rates (68.4 points) and financial constraints (65.6 points). Analysts say these constraints underscore the depth of structural weaknesses confronting Nigeria’s private sector.
Despite these challenges, the survey reported a rise in business optimism. The Business Confidence Index increased to 38.5 points in October from 31.5 in September. Firms also projected confidence levels to reach 45.6 points in November, with expectations of further improvement over the next three to six months.
However, sector analysts warn that the optimism remains fragile due to the lack of significant improvements in the operating environment.
The BES further showed a modest rise in capacity utilisation from 60.4% in September to 62.0% in October, suggesting that businesses have yet to deploy their productive capacity amid ongoing disruptions fully.
In contrast to the structural constraints highlighted in the BES, the PMI report indicated strengthening economic momentum. The composite PMI rose to 55.4 points, reflecting expansion across major components such as output, new orders, employment, inventories, and supplier delivery times.
A sectoral breakdown showed that the agriculture sector recorded the most substantial improvement, with its PMI climbing to 57.5 points, marking 15 consecutive months of expansion. The services sector also expanded for the ninth straight month to 55.6 points, while the industry sector rose to 54.2 points, the highest in more than a year.
The CBN attributed the positive trends to improvements in the broader macroeconomic landscape, including declining inflation, which eased from 24.5% in January to 18.0% in September, and the year-to-date appreciation of the naira across both official and parallel markets.
The BES showed that the North-East posted the highest business confidence at 56.1 points, while the South-South recorded the lowest at 23.3 points, a trend linked to declining activity in oil-producing communities.
The Federal Government will on Tuesday, November 25, officially unveil a strategic programme for a free nationwide training of over 100,000 youth on financial literacy.
The Federal Ministry of Youth Development will launch the programme in collaboration with Investonaire Academy. Tagged, the “Financial Literacy, Investment, and Wealth Creation programme.”
The flagship initiative is designed to equip young Nigerians with essential financial skills, investment knowledge, and digital competencies for sustainable wealth creation.
A statement signed by the Director, Press and Public Relations, Federal Ministry of Youth Development, Omolara Esan, and made available to newsmen, confirmed that the launch of the programme, to be held in Abuja, would promote nationwide participation.
It added that the launch would bring together senior government officials, development partners, private sector leaders, and youth representatives to explore innovative approaches for improving financial capability and strengthening the economic prospects of young Nigerians.
Minister of Youth Development, Comrade Ayodele Olawande, would serve as the chief host, while the Minister of Women Affairs, Hajiya Imaan Sulaiman-Ibrahim, would grace the event as the Special Guest of Honour.
Also expected are representatives of key government institutions and private sector partners, including Dr Enefola Odiba, International Programme Director, Investonaire Academy, and Mr. Bashir Nurmohamed, Chief Executive Officer, Hantec Markets
The statement reads, “A major highlight of the event will be the unveiling of a free national financial literacy training programme targeting over 100,000 youths annually. The programme will be powered by a state-of-the-art Learning Management System (LMS) designed to enhance financial intelligence, investment capacity, and entrepreneurial readiness among Nigerian youth.
Lady Godknows Ogbulu
The chairman of the United Bank for Africa, Tony Elumelu, says Nigeria’s economic transformation will be driven by entrepreneurs, not government handouts or foreign assistance.
Elumelu, who spoke at the Grow Nigeria Conference 2.0 and themed ‘Empowering Nigeria’s Entrepreneurs: Building Institutions That Last’, in Lagos, Monday, said the nation’s future is already being shaped by business owners who refuse to settle for mediocrity.
Elumelu, who is also the founder of the Tony Elumelu Foundation, described Nigeria as an entrepreneurial nation but stressed the need to build institutions that can stand the test of time.
“Starting businesses is good. Sustaining them is critical, and that’s how we transform this economy,” he said.
He noted that many promising ideas fail because the systems and support structures necessary for growth are absent.
According to him, Nigeria’s renewal must come from the private sector, backed by strong governance frameworks and proper succession planning.
“Nigeria will not be built by government handouts or foreign aid. Government’s role is critical, but Nigeria will be built by entrepreneurs — by you, building businesses that create jobs, hope, and prosperity from the ground up,” he said.
Elumelu, however, emphasized that entrepreneurs cannot succeed in isolation.
“You need frameworks — clear governance, succession planning, and relentless focus on value. We need the right environment. We need a Nigeria where policies are predictable, infrastructure works, and financing is truly accessible,” he said.
He called for stronger alignment between public and private sector efforts, warning that progress would remain limited if institutions work independently rather than collaboratively.
Elumelu commended the Director-General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Charles Odii, for ongoing reforms within the agency.
He further lauded President Bola Tinubu for appointing young Nigerians to lead key institutions and for prioritizing youth entrepreneurship.
“Let us cut the bureaucracy. Make finance and opportunity real, not theoretical. Let’s help Nigeria’s entrepreneurs move from surviving to winning.
“Every job we create fights insecurity. Every thriving business increases our tax base and accelerates prosperity for all,” Elumelu added.
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