Nigeria has secured a disappointing 123rd position out of 165 countries, according to the latest Economic Freedom of the World (EFW) 2025 Annual Report. With a score of 5.89 out of 10, Nigeria lags behind several African nations, including Tunisia, Guinea, Niger, and Ghana, which scored slightly higher.
Conducted by the Cato Institute in partnership with Canada’s Fraser Institute, the report offers a comprehensive assessment of the economic freedoms available in countries worldwide. The index evaluates factors such as rule of law, property rights, regulatory burden, freedom to trade internationally, and sound money. These indicators measure how freely individuals can make their own economic decisions without being excessively restrained.
Among African nations, Mauritius leads the continent, ranking 21st globally with a score of 7.73. Other African nations, including Cabo Verde (44th), Gambia (68th), Kenya (81st), and South Africa (83rd), also outperformed Nigeria. These countries are positioned significantly ahead, highlighting the ongoing challenges Nigeria faces in enhancing economic freedom.
The EFW report emphasizes that economic freedom is a vital component of human freedom. It underscores the importance of enabling individuals to engage in economic activities, such as working, trading, contracting, and managing productive assets, without undue interference. Countries that score higher on the index provide their citizens with the freedom to make independent economic choices while respecting others’ rights.
Globally, Hong Kong, Singapore, and New Zealand top the list, with other highly-rated nations including Switzerland, the United States, Ireland, and Australia. On the flip side, countries such as Chad, Libya, Syria, and Venezuela occupy the lowest spots, reflecting the severe limitations on economic freedoms in these regions.
This report underscores the pressing need for Nigeria to reassess and reform its economic policies, particularly in improving regulatory frameworks, property rights, and the ease of doing business.
The country’s current ranking, though an improvement over some neighboring states, points to significant room for growth in fostering a more competitive and free economic environment.
