In 2025, Nigeria achieved a significant 148% rise in Foreign Direct Investment (FDI) inflows, positioning itself as a top performer within Africa. Data from the UN Trade and Development (UNCTAD) World Investment Report 2026 highlights this growth, which occurred even as the broader African continent experienced a 26% decline in total FDI, falling from $94 billion to $70 billion.
Nigeria’s annual FDI increased to $4.01 billion, up from $1.61 billion in 2024. While this success places Nigeria ahead of regional peers like Ethiopia and Kenya, the nation still lags behind Egypt, Guinea, and Mozambique. Analysts point out that this growth was heavily influenced by major deals in the energy sector, such as Renaissance Africa Energy’s purchase of Shell’s onshore assets and Huaxin Cement’s acquisition of Lafarge Africa. This focus on hydrocarbons rather than diversified manufacturing raises questions about the long-term impact of these inflows.
Although Nigeria captured 5.8% of Africa’s total FDI, it represented only 0.25% of global flows. In contrast, countries like Brazil secured $77 billion, nearly matching the entire African continent’s intake. Despite Africa’s overall decline—partially attributed to a singular large-scale project in Egypt during 2024—the continent’s current figures remain above the 2010-2024 average.
To convert these figures into sustainable economic development, experts emphasize the need for investments in manufacturing, technology, and export-focused sectors. While recent fiscal and petroleum sector reforms have boosted sentiment, structural barriers like power supply issues, infrastructure gaps, security concerns, and regulatory instability remain major obstacles to attracting consistent, high-quality foreign capital.
