Nigeria’s last best chance to compete for global capital

So much has happened over the past year, and today we want to take a moment to talk about foreign direct investment (FDI) and what it means for Nigeria. This is not just another topic; it is a timely and important priority that speaks to our economic future, our role in the world, and the kind of opportunities we want to create for the next generation.

But you would be forgiven for not knowing exactly what FDI means. Put simply, foreign direct investment is when a business or investor from one country puts money into starting or growing a business in another. It is not just about money; it is about long-term commitment, knowledge, jobs, and shared growth.

“Just as trade patterns reflect fundamental economic forces like savings and investment, Nigeria’s investment story reflects the strength and coherence of its policy environment.”

FDI matters. It matters at the national level, where it helps grow the economy, create jobs, and improve infrastructure. It also matters at the local level, where it can bring new businesses, skills, and real opportunities to everyday people. And of course, the two are closely connected.

We are going to start by sharing some key points from a recent UNCTAD report before examining whether the issues we see still matter today. The main takeaway is that Africa has truly emerged as a real force in global investment. According to UNCTAD, foreign direct investment jumped by 75 percent in 2024, reaching a record $97 billion, and for the first time, the continent claimed 6 percent of all global FDI inflows.

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There are important details to consider, which we will get into, but this isn’t just a statistic. It marks a major shift in how the world views Africa’s potential.

The second point is that this investment boom has not been felt the same across Africa. Only a few countries with clear plans, strong institutions, and trusted policies have attracted most of the new money. Sadly, Nigeria, which is the biggest economy and has the largest population in Africa, is not one of them.

So, why is Nigeria missing?

The truth is, this is not a simple issue of chance or circumstance. Nigeria’s position is shaped by policy uncertainty and infrastructure challenges that have shaped how investors see the country. These are not isolated problems; they are symptoms of broader governance and economic dynamics. Just as trade patterns reflect fundamental economic forces like savings and investment, Nigeria’s investment story reflects the strength and coherence of its policy environment. If Nigeria gets it right, there is no reason it cannot become a leader and attract the investment its people deserve.

Well, up to a point, yes. If Nigeria is to participate meaningfully in Africa’s investment renaissance, it must act with urgency. Reform must start with the investment journey itself, so apologies for that. The argument, as we interpret it, is that today, entering the Nigerian market is too often an exercise in endurance. And actions have to be taken to put this right.

As we read it, there are two parts to this argument. First, regulatory uncertainty, opaque procedures, and overlapping institutions create friction where there should be flow. What is needed is a single, digitally integrated investment platform, anchored by enforceable service standards and built for speed, clarity, and predictability. The macro story is that for global investors, efficiency is not optional; it signals seriousness. The second point, equally urgent, is the need to move from abstract opportunity to concrete delivery.

Let us briefly set out how this is linked.

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We need to understand that Nigeria needs to move from being a country of broad potential to one defined by specific, sector-led investment opportunities. This means creating specialised investment zones developed with private capital and focused on sectors like renewable energy, digital infrastructure, advanced manufacturing, and agritech. These zones must serve as engines of national competitiveness, not isolated enclaves, and be firmly connected to value chains, export markets, and workforce development.

Why does this matter? Because high-impact greenfield investment must sit at the centre of our strategy. These are projects built from the ground up. They do more than create jobs; they strengthen supply chains, transfer knowledge, and anchor long-term growth. An annual National FDI Prospectus, mapping out real investment opportunities, could help close the credibility gap. So too could a ‘Green Investment Passport,’ a dedicated fast-track mechanism for projects aligned with global climate finance and sustainability mandates.

But none of this will work without coordination at the highest levels. For too long, investment promotion has been fragmented and reactive. What is needed now is coherence and authority to drive reform forward and sustain it.

As we close, three further points seem particularly important. First, while we are eager to attract investors, they will not scale operations in an environment where power is unreliable, logistics are slow, and broadband is patchy. Nor will they thrive in a labour market out of step with modern industry. Second, the cost of inertia is real, rising, and measurable. Without focus and speed, Nigeria risks becoming an afterthought in the global investment conversation. Third, if we agree there is urgency, then the reward is more than capital; it is jobs, skills, innovation, and tax revenue. We cannot ignore this. Because if Nigeria does not course-correct now, the next wave of African prosperity may pass us by. We conclude from this that there is a scale of work to be done. But we have the scale. We have the market. We have the people. What remains is the resolve to lead. This is not just Nigeria’s investment moment. It may well be the last, best chance to shape the future we have long promised ourselves.

Chibuzor Amadi is a Lecturer in Accounting and Finance at the University of South Wales, while King Omeihe, who serves as President of the Academy for African Studies, is a Senior Lecturer at the University of the West of Scotland.