In the 2015-2016 edition of the Global Competitive Index, Nigeria ranked 124th out of 140 countries.
The latest ranking means the country slipped five places when measured by the relative number of countries each year.
In this year’s ranking, Mauritius, which is placed at 45th position, takes the lead among sub-Saharan African countries, followed by South Africa and Rwanda, ranked 47th and 52nd, respectively.
The report, released on Wednesday, classifies Botswana as one of the fastest rising economies, in league with India, Jamaica, and Mexico.
The southern African country moved seven steps upward, from the 71st position it occupied in 2015 to 64th position in the latest ranking, while India moved up 16 steps from 55th to 39th.
Botswana, the world’s largest producer of diamonds, is reputed to be one of the most stable countries in Africa.
Nigeria’s neighbour, Ghana, is ranked 114.
Other West African countries that are ranked higher than Nigeria are: Côte d’Ivoire, 99th; Gabon, Cape Verde, 110th; 108th; Senegal, 112nd; Gambia, 123rd; Benin Republic, 124th; and Mali, 125th;
Nigeria only fared better in this year’s ranking than a few African countries like Madagascar (128th), Congo Democratic Republic (129th), Liberia (131th), and Chad (136th).