Nigeria’s efforts to attract foreign investment received a major boost in 2025 as foreign direct investment (FDI) inflows more than doubled to approximately $4 billion, according to the United Nations Conference on Trade and Development (UNCTAD). The remarkable increase from the $1.6 billion recorded in 2024 signals renewed investor confidence in Africa’s largest economy, with the oil and gas sector emerging as the key driver behind the recovery.
In its latest World Investment Report 2026 titled International Investment in a Turbulent Era, UNCTAD revealed that large-scale international project financing deals, particularly in Nigeria’s energy sector, played a significant role in attracting foreign capital. One major oil and gas transaction alone was valued at nearly $2 billion. The report also highlighted notable corporate deals, including Renaissance Africa Energy’s acquisition of Shell’s onshore oil assets and Huaxin Cement’s purchase of Lafarge Africa Plc, further strengthening Nigeria’s appeal to global investors.
Beyond attracting foreign capital, Nigerian companies also expanded their footprint abroad. The report showed that Nigeria’s outward FDI nearly tripled to $1.2 billion in 2025, up from about $408 million the previous year. At the same time, the country’s total stock of foreign investment rose to $92.9 billion, reflecting growing confidence in Nigeria’s long-term economic prospects despite global market uncertainties.
Nigeria’s strong performance contributed significantly to West Africa becoming one of only two African regions to record growth in foreign investment during the year. The sub-region saw FDI inflows jump by 44 percent to $19.6 billion, while many other parts of the continent experienced declines. UNCTAD noted that Nigeria ranked among Africa’s leading destinations for large-scale projects, attracting investments in hydrocarbons, refining, battery storage, and industrial manufacturing, sectors considered critical for future economic growth and job creation.
The report also credited recent government reforms for helping improve the investment environment. Measures such as the introduction of a minimum tax framework for multinational corporations, performance-based incentives in the petroleum industry, and innovation-friendly policies under the Nigeria Startup Act have helped strengthen investor confidence. While global FDI reached $1.6 trillion in 2025, UNCTAD warned that growth remains fragile and heavily dependent on a handful of mega projects. Nevertheless, Nigeria’s strong showing positions the country as one of Africa’s most attractive investment destinations and a key beneficiary of the continent’s evolving economic landscape.
source: The guardian