Nigeria’s FDI surges 148% to $4bn despite Africa’s investment slump– UNCTAD

Nigeria recorded a sharp increase in foreign direct investment (FDI) inflows in 2025, bucking the broader decline across Africa, according to the United Nations Trade and Development (UNCTAD) World Investment Report 2026.

The report showed that while global FDI rose by 6 per cent to $1.624 trillion in 2025, investment inflows into Africa fell by 26 per cent to about $70 billion, representing just 4.3 per cent of total global FDI.

In contrast, Nigeria’s FDI inflows climbed from $1.61 billion in 2024 to approximately $4 billion in 2025, marking a remarkable 148 per cent increase and positioning the country among the few African economies to record significant growth in foreign investment.

However, analysts cautioned that the strong rebound masks underlying structural concerns, as much of the investment was concentrated in the oil, gas and energy sectors.

The findings were highlighted in the latest BACITI Economic Insight, which examined global investment trends, Africa’s position in the increasingly competitive FDI landscape and the implications of Nigeria’s investment recovery for long-term economic development.

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According to the report, the key issue is no longer the volume of foreign investment flowing into Nigeria but whether such investments are capable of driving industrialisation, creating quality jobs, boosting exports and strengthening the country’s participation in regional and global value chains.

The report argued that Nigeria’s investment strategy should shift from prioritising headline FDI figures to attracting investments that foster technology transfer, value addition, stronger domestic enterprises and sustainable economic growth.

It stressed that future policies should focus on improving the quality and sectoral composition of foreign investments while ensuring stronger linkages between multinational investors and local businesses.

The report further noted that converting foreign capital into productive capacity and enhanced export competitiveness would be critical to achieving inclusive economic development.

Analysts also observed that although Nigeria’s improved FDI performance is a positive signal for investor confidence, sustaining the momentum will require policy reforms that encourage investment diversification beyond the extractive industries.

The report concluded that both Nigeria and Africa face a common challenge: not merely attracting foreign capital, but ensuring that investment delivers broader economic transformation through industrial growth, innovation, employment generation and increased competitiveness in global markets.