Nigeria recorded a sharp rebound in foreign direct investment in 2025, emerging as one of Africa’s strongest performers despite a significant decline in investment across the continent.
The country’s Nigeria FDI inflows increased by 148 per cent, rising from $1.61 billion in 2024 to $4.01 billion in 2025, according to the United Nations Trade and Development, UNCTAD, World Investment Report 2026. The increase came as foreign investment into Africa fell by 26 per cent, from $94 billion in 2024 to $70 billion in 2025.
The report placed Nigeria among Africa’s leading destinations for foreign investment, with its 2025 inflows exceeding those recorded by Ethiopia, Morocco, Kenya, Côte d’Ivoire and Ghana. Nigeria, however, remained behind Egypt, Guinea and Mozambique in total inflows. The global investment picture was more positive, with worldwide FDI rising six per cent from $1.532 trillion in 2024 to $1.624 trillion in 2025.
Developed economies accounted for much of the recovery, recording an 11 per cent increase in inflows. Europe posted the strongest regional growth, with investment rising 39 per cent to $285 billion, while developing Asia remained the largest destination among emerging economies with $644 billion.
Despite the strong increase in Nigeria FDI inflows, the report highlighted concerns about the composition of the investment. Much of the increase was linked to major transactions in the oil, gas and energy sectors rather than a broad expansion of investment in manufacturing and other productive industries.
Among the significant transactions were Renaissance Africa Energy’s acquisition of Shell’s onshore assets and Huaxin Cement’s purchase of Lafarge Africa. While the deals substantially increased Nigeria’s headline FDI figures, they also highlighted the country’s continued reliance on hydrocarbons as a major attraction for foreign capital.
Nigeria accounted for approximately 5.8 per cent of Africa’s total FDI in 2025. However, its share of global FDI stood at only about 0.25 per cent, underscoring the gap between the size of its economy and the foreign capital it attracts.
UNCTAD said Africa’s decline partly reflected the unusually large Ras El-Hekma investment deal recorded by Egypt in 2024. That transaction had significantly boosted the continent’s previous-year investment figures. Even with the decline in 2025, however, Africa’s $70 billion inflow remained its third-highest on record and about one-third above its average between 2010 and 2024.
The report also showed the scale of the global investment gap. Brazil alone attracted about $77 billion in FDI during the year, exceeding the total amount received by the entire African continent. India attracted $39 billion, nearly 10 times Nigeria’s 2025 inflow.
The latest figures suggest that attracting larger volumes of foreign capital may not be enough for Nigeria. Analysts say the country will need to focus increasingly on the quality and long-term economic impact of investments entering the economy.
Greater investment in manufacturing, technology, export-oriented industries and domestic supply chains could help Nigeria translate rising FDI into broader economic growth. Recent reforms in the foreign exchange market, fiscal policy and petroleum sector have reportedly improved investor sentiment. However, several structural challenges continue to discourage long-term productive investment.
These include unreliable electricity, inadequate infrastructure, insecurity, logistics constraints, high financing costs and regulatory uncertainty. Addressing those challenges, analysts say, will be critical if Nigeria is to turn the recent surge in Nigeria FDI inflows into sustained investment, stronger productive capacity and wider economic opportunities.
