The United Kingdom has emerged as Nigeria’s largest source of foreign capital over the past year, accounting for about 65 per cent of all recent investment inflows into the country, according to data released by the Federal Ministry of Industry, Trade and Investment.
The disclosure highlights a sharp rise in UK-backed investments across agriculture, manufacturing and industrial processing, reflecting renewed international confidence in Nigeria’s economic direction. Government officials said the surge followed a series of reforms under President Bola Tinubu’s administration, alongside deeper trade ties between both countries.
Key investments include funding into agribusiness firm Babban Gona and industrial player Johnvent Industries, signalling strong interest in Nigeria’s food value chain and manufacturing capacity.
The Ministry said the rebound in foreign inflows is the result of coordinated policy changes aimed at improving market access, reducing entry barriers and strengthening institutional frameworks. According to the government, Nigeria moved away from passive investment promotion in 2025 and adopted a more aggressive, project-driven approach that focused on deal structuring, risk reduction and investor support.
Officials noted that this strategy helped convert several high-value commitments into live projects, with multiple billion-dollar investments now progressing across priority sectors.
Beyond capital inflows, the government reported significant gains in non-oil exports, driven by improvements in export processes, certification systems and farmer support programmes. Nigeria’s non-oil exports recorded strong growth in the first half of 2025, led by agricultural produce, solid minerals, processed foods and industrial goods. Cocoa derivatives, sesame seeds, cashew, ginger, fertilisers and cement featured prominently among top exports.
The export expansion contributed to a substantial trade surplus, reinforcing Nigeria’s push to reduce dependence on crude oil revenues.
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Brandspur notes that the return of foreign investors is also linked to Nigeria’s macroeconomic adjustments, including foreign exchange reforms, subsidy removal and tighter monetary policy. These changes have helped stabilise key market indicators and restore confidence among portfolio investors and direct investors alike.
The Nigerian Exchange recorded one of its strongest performances globally in 2025, supported by increased foreign participation and rising local investor activity.
The government also reported renewed interest from Nigerian investors, with several companies expanding operations and reinvesting in manufacturing, agro-processing and industrial clusters. A newly introduced domestic investment engagement framework was credited with resolving long-standing bottlenecks faced by local businesses, encouraging expansion and job creation.
Officials said thousands of direct jobs were created through Special Economic Zones and free trade areas during the year, alongside hundreds of millions of dollars in export earnings.
Nigeria’s leadership role under the African Continental Free Trade Area was also highlighted, with the country securing key responsibilities in shaping Africa’s digital trade framework. The government believes this position will further enhance Nigeria’s attractiveness as a regional investment hub.
The Ministry said 2026 will focus on project delivery, sector-specific investor engagement and measurable impact across solid minerals, digital trade, the creative economy and climate-smart industries.
Officials described 2025 as a turning point in Nigeria’s economic reset, with rising foreign confidence, expanding exports and improving competitiveness laying the groundwork for sustained growth.
