The World Bank’s latest Africa Pulse report has revealed a bleak future for Nigeria, with poverty expected to rise by 3.6 per cent by 2027.

The report also said Nigeria’s over-reliance on oil, economic fragility, and governance challenges are key reasons for this development.

“Poverty in resource-rich, fragile countries, including large economies like Nigeria and the Democratic Republic of Congo, is projected to increase by 3.6 percentage points between 2022 and 2027,” the report stated.

After the IMF report, a look at Africa’s economic rankings has taken a fresh turn in 2024, with surprising shifts that reflect the changing tides of growth, investment, and macroeconomic management across the continent

Where does Nigeria rank amongst African countries with the best economy?

1. South Africa – $400.19 billion

South Africa reclaims its position as Africa’s biggest economy. This comes on the back of renewed investor confidence, better governance in key sectors, and resilience in industries like mining, finance, and renewable energy. Despite past struggles, the country seems to be regaining its stride.

2. Egypt – $383.11 billion

Egypt continues to shine in North Africa. Strategic investments in infrastructure, the Suez Canal’s global relevance, and economic reforms are propelling it forward. Its large consumer base and location as a trade hub give it a competitive edge.

3. Algeria – $264.91 billion

Algeria’s economy rides on the strength of its oil and gas exports. High global energy prices, coupled with domestic investment in public infrastructure, have pushed it into the third spot. It’s a reminder of the influence hydrocarbon economies still wield on the continent.

4. Nigeria – $187.64 billion

Once Africa’s top economy, Nigeria now finds itself in fourth place. Despite being rich in oil and boasting a large population, economic instability, currency fluctuations, and insecurity have dampened growth. The need for fiscal reforms and diversification is more urgent than ever.

5. Morocco – $155.35 billion

Morocco rounds off the top five, powered by a diverse economy that includes agriculture, tourism, and manufacturing. Stable governance and strategic foreign partnerships continue to give it an edge in North Africa and beyond.

Meanwhile, other strong performers include Ethiopia and Kenya, showcasing East Africa’s growing influence. Angola, Côte d’Ivoire, and Ghana round out the top ten, marking West Africa’s evolving role in regional trade and innovation.