President Bola Ahmed Tinubu’s administration has secured more than $50 billion in foreign investment commitments through 87 Memoranda of Understanding (MOUs) since taking office in May 2023. However, actual Foreign Direct Investment (FDI) flowing into Nigeria during the period stood at only about $2.06 billion, highlighting a wide gap between investment promises and money that has entered the economy.
The commitments, secured through the President’s international trips and diplomatic engagements, cover major sectors including energy, manufacturing, agriculture, technology, logistics and infrastructure. Some of the biggest pledges include ExxonMobil’s $10 billion deepwater expansion, APPL’s €9.2 billion Hydrogen Polis project in Akwa Ibom, Indorama’s $8 billion petrochemical and fertilizer expansion, Jindal Steel’s $3 billion steel investment and Shell’s $3 billion oil and gas commitment.
Despite the size of the announced commitments, data compiled from the National Bureau of Statistics (NBS) shows that Nigeria attracted about $47.6 billion in total foreign capital between May 2023 and the first quarter of 2026. FDI accounted for just $2.06 billion, representing roughly 4.3% of total capital importation during the period. The figures suggest that much of the foreign capital entering the country has come through more mobile portfolio investments rather than long-term direct investments.
Economists say the difference does not necessarily mean the investment pledges have failed. Dr Muda Yusuf, founder and CEO of the Centre for the Promotion of Private Enterprise, explained that major FDI decisions often take time because investors assess economic conditions, country risks, financing options and the wider business environment before releasing funds. Similarly, University of Abuja lecturer Dr Olu Olajemgbesi said the pledges demonstrate significant investor interest but stressed that the more important question is how many projects have progressed to financial close, final investment decisions and actual capital deployment.
For Nigeria, the real test may therefore be turning investment announcements into factories, expanded businesses, jobs and productive capacity. While the government’s investment diplomacy has generated billions of dollars in potential commitments, realised FDI offers a clearer picture of how much foreign money is actually being put to work in the economy. With FDI accounting for only 3.97% of Nigeria’s $23.22 billion total capital importation in 2025, the challenge remains not just attracting investors, but convincing them to move from pledges to execution.
source: nairametrics
