Nigeria’s foreign direct investment inflows fell 88% between 2011 and 2024
Nigeria was once one of Africa’s top destinations for foreign direct investment (FDI). In 2011, inflows peaked at $8.91 billion. By 2024, that figure had dropped to $1.08 billion, marking an estimated 88 percent decline over 13 years.
Below is a clear, chronological breakdown of how the slide unfolded and what each phase reveals about Nigeria’s investment story.
1. 2010–2011: The high point before the fall
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2010: $6.10 billion
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2011: $8.91 billion (peak)
Nigeria entered the last decade riding strong global commodity prices and investor confidence. Oil production was stable, reforms were still fresh, and capital inflows surged to their highest level on record in 2011.
2. 2012–2014: Early warning signs
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2012: $7.13 billion
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2013: $5.61 billion
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2014: $4.69 billion
FDI began a steady decline even before the oil price crash. Policy uncertainty, security concerns, and weakening investor sentiment slowly eroded inflows, cutting Nigeria’s FDI almost in half within three years.
3. 2015–2017: Oil shock and recession years
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2015: $3.06 billion
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2016: $3.45 billion
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2017: $2.41 billion
The 2014–2016 oil price crash pushed Nigeria into recession. Foreign investors pulled back sharply as foreign exchange shortages, capital controls, and macroeconomic instability deepened.
4. 2018: The collapse year
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2018: $775.24 million
This marked one of Nigeria’s weakest FDI performances in modern history. Inflows fell below $1 billion, reflecting persistent FX restrictions, rising insecurity, and growing competition from other African economies.
5. 2019–2021: A short-lived recovery
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2019: $2.31 billion
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2020: $2.39 billion
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2021: $3.31 billion
FDI rebounded modestly, helped by partial FX reforms and post-pandemic capital repositioning. However, the recovery never approached earlier highs, and investor confidence remained fragile.
6. 2022: Another sharp reversal
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2022: $895 million
Global tightening, domestic FX backlogs, and rising inflation triggered another slump. FDI again dropped below $1 billion, underscoring how shallow Nigeria’s recovery had been.
7. 2023–2024: Reform hopes, uneven results
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2023: $1.87 billion
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2024: $1.08 billion
Despite renewed reform signals, inflows remained volatile. By 2024, Nigeria’s FDI stood at less than one-third of its 2011 peak, highlighting how difficult it has been to translate policy changes into sustained investor confidence.
Nigeria’s FDI story over the past 14 years is not one of a single shock, but of prolonged erosion. Policy uncertainty, foreign exchange constraints, security challenges, and global competition steadily weakened the country’s appeal to long-term investors.
As of 2024, Nigeria is still far from reclaiming its position as a top African FDI destination, despite recent reforms.
