FDI Inflow into Nigeria Hits 11-Year High on Oil Sector Recovery
*Foreign direct investments more than double to $4bn in 2025
Nigeria experienced a sharp rebound in long-term capital inflows last year, with foreign Direct Investment (FDI) reaching its highest level in more than a decade, primarily driven by oil and gas-related international project finance deals.
FDI into Africa’s most populous country rose by 148.4 percent to $4 billion in 2025, from $1.61 billion in the previous year, according to the World Investment Report 2026 released on Tuesday by the United Nations Conference on Trade and Development.
The increase marked Nigeria’s strongest FDI performance since 2014, when inflows stood at $4.69 billion.
UNCTAD said FDI inflows rose across several West African economies, supported largely by investments in natural resources and energy.
“FDI inflows rose in several West African economies, supported mainly by investment in natural resources and energy,” the report said.
Inflows into Guinea increased more than fivefold to about $8 billion, driven by bauxite and iron ore mining projects, reinforcing the country’s growing role in global mineral supply chains, it added.
Nigeria attracted about $4 billion in FDI, supported mainly by oil and gas-related international project finance deals, including a major project valued at about $2 billion, according to the report.
The rebound comes as the government steps up efforts to attract foreign investors through reforms aimed at improving the business environment, stabilising the foreign exchange market and expanding investment in energy and infrastructure.
Across Africa, FDI inflows declined to $70 billion in 2025 from an exceptional $94 billion recorded in 2024. However, last year figure remained historically strong, standing about one-third above the average recorded between 2010 and 2024.
UNCTAD said the 2024 total was boosted by a small number of unusually large transactions, particularly the Ras El-Hekma construction and real estate megaproject in Egypt.
Despite the year-on-year decline, the continent’s 2025 inflows represented the third-highest level recorded in 25 years. Excluding exceptional peaks linked to large one-off transactions in South Africa in 2021 and Egypt in 2024, the report said FDI inflows in 2025 marked the region’s strongest performance in recent decades.
