Global FDI rises 6% to $1.6tn in 2025, but Nigeria's Q1 inflows plunge to $135m
Global FDI rose 6% to $1.6 trillion in 2025, according to UNCTAD's 2026 World Investment Report, while developing economies attracted just over $901 billion, a 2% rise from 2024. Excluding conduit flows through major financial hubs, global FDI grew 4%; inflows to developed economies jumped 11% to $723 billion, and high-income economies surpassed $1.1 trillion. Low-income countries saw a 10% increase, albeit from a low base.
For Nigeria, the picture is stark: FDI fell to $135.08 million in Q1 2026 from $357.80 million in Q4 2025, a $222.72 million quarter-on-quarter drop, according to the National Bureau of Statistics. Total capital inflows reached $10.37 billion in the quarter, but most came from portfolio investments and other short-term financial instruments, not the long-term, productive investment driving the global surge.
What this means for investors and policymakers is that Nigeria must strengthen its capacity to attract large-scale, technology-intensive projects—through reliable power, transport links, clear regulations and targeted incentives—to compete for the FDI that is increasingly flowing to economies with stronger industrial policies. The UNCTAD report notes that the 2025 increase was concentrated in economies with stronger capacity to attract large-scale, strategic investment, highlighting a gap Nigeria must close.