Nigeria attracted $4.01 billion in foreign direct investment (FDI) in 2025, its strongest annual performance in more than a decade, as large energy-sector transactions and corporate acquisitions lifted capital inflows, according to the UNCTAD World Investment Report 2026.
The figure represents a 148.8% increase from the $1.61 billion recorded in 2024 and marks Nigeria’s highest annual FDI inflow since 2014, underscoring renewed investor interest in Africa’s largest oil producer despite persistent macroeconomic challenges.
According to the report, the sharp increase was driven primarily by international project finance in the oil and gas sector, with a single energy-related project worth approximately $2 billion accounting for a substantial share of total inflows. The report indicates that the concentration of investment in one major project significantly boosted Nigeria’s overall performance during the year.
Corporate transactions also contributed to the improved investment figures. Among the most significant was the completion of Shell’s divestment of its onshore assets to Renaissance Africa Energy, a landmark transaction that reshaped Nigeria’s upstream oil industry. In addition, Huaxin Cement’s acquisition of Lafarge Africa’s local operations strengthened foreign investment inflows into the manufacturing sector.
The improved performance returned Nigeria to the list of Africa’s five largest FDI destinations for the first time since 2021. According to UNCTAD, Nigeria ranked fourth on the continent, behind Egypt, Guinea and Mozambique.
The rebound comes as Nigeria continues to implement economic reforms aimed at improving the investment climate, including exchange rate liberalisation, efforts to enhance fiscal stability and reforms in the energy sector. Stronger foreign capital inflows could help support the country’s balance of payments, strengthen foreign exchange liquidity and improve long-term productive capacity.
However, the composition of the inflows has raised concerns among economists. The bulk of the investment remains concentrated in the extractive sector, limiting its potential to generate widespread employment, industrial expansion and technology transfer across the broader economy.
Analysts say sustaining the recovery will depend on Nigeria’s ability to attract more greenfield investment into manufacturing, agriculture, technology and infrastructure rather than relying predominantly on hydrocarbons.
With global investment flows facing headwinds from geopolitical tensions, high borrowing costs and slowing economic growth, Nigeria’s challenge will be converting large one-off transactions into sustained, diversified investment capable of supporting inclusive economic growth over the long term.
