Nigeria faces gap between $50bn investment pledges and $2.06bn actual FDI

Nigeria’s administration faces a significant gap between investment promises and actual capital inflows. Since May 2023, President Bola Tinubu has secured over $50 billion in investment commitments through 87 Memoranda of Understanding (MOUs) across sectors like energy, manufacturing, and infrastructure. However, National Bureau of Statistics data shows that actual Foreign Direct Investment (FDI) totaled only approximately $2.06 billion, representing about 4.3% of the $47.6 billion in total foreign capital imported during that period. Much of the incoming capital has consisted of mobile portfolio investments rather than long-term direct investments.

In related economic developments, President Tinubu has urged the Nigerian banking sector to prioritize productive investment and credit access for businesses and MSMEs over mere profit maximization. He emphasized that a resilient financial system must support the real economy to drive growth.

Additionally, Vice President Kashim Shettima stated that the administration is prioritizing transportation infrastructure—including highways, rail, and ports—to reduce the cost of moving goods and people, which the government views as an economic necessity for national productivity.