Oil, Gas Projects Propel Nigeria’s FDI to $4bn

Nigeria recorded a major foreign investment rebound in 2025, attracting nearly $4 billion in foreign direct investment (FDI) as large-scale oil and gas projects reignited investor confidence and signalled a recovery from years of sluggish capital inflows.

According to the World Investment Report 2026 published by the United Nations Conference on Trade and Development (UNCTAD), FDI into Nigeria surged to $4.005 billion in 2025, more than doubling the $1.6 billion recorded the previous year. The growth was driven primarily by high-value international project finance (IPF) deals in the energy sector, including a flagship project worth about $2 billion.

The latest figures mark one of Nigeria’s strongest investment recoveries in recent years. After FDI dropped to just $895 million in 2022, the country has steadily regained the attention of international investors, emerging as one of the few African economies to record significant gains despite a challenging global investment climate.

UNCTAD also reported a sharp rise in Nigeria’s outbound investments, which increased from $408 million in 2024 to $1.19 billion in 2025. Meanwhile, the country’s total stock of inward foreign direct investment expanded to nearly $93 billion, reflecting growing confidence in Africa’s largest economy.

The report credits the resurgence to a wave of strategic investments, mergers and acquisitions, as well as policy reforms designed to improve Nigeria’s business environment. Notable transactions included Renaissance Africa Energy’s acquisition of Shell’s onshore oil assets and Huaxin Cement’s takeover of Lafarge Africa, both of which boosted investment activity.

The upbeat outlook comes as Nigeria continues to position itself as a preferred destination for energy investment, with several multibillion-dollar oil and gas projects moving closer to final investment decisions. Industry experts say recent fiscal reforms, regulatory improvements and investor-friendly policies are helping restore confidence in the country’s energy sector.

While the rebound signals renewed optimism, analysts caution that maintaining the momentum will require sustained economic reforms, stable macroeconomic policies, stronger infrastructure and improved security. They argue that broadening investment beyond oil and gas will be essential to achieving long-term, diversified economic growth