How Nigeria’s Economic Revival is Attracting Global Investors – The Economist

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‎Nigeria is re-emerging as a magnet for global capital after years of economic turbulence. The Economist notes that President Bola Tinubu’s sweeping reforms, though painful for households, are beginning to restore stability and spark renewed investor interest.
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‎Since 2023, Tinubu has dismantled costly fuel subsidies, floated the naira, and tightened monetary policy to rein in inflation. These measures, combined with improved security in the Niger Delta and new tax incentives, have created a more predictable business environment.
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‎The results are striking. Inflation, which soared to nearly 35% in late 2024, has dropped to 15.2% by the end of 2025. Foreign-exchange reserves have climbed to $46bn, their highest in seven years, while the naira has stabilised. The IMF projects GDP growth of 4.4% in 2026.
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‎Global energy giants are responding. Shell has announced plans to develop a $20bn offshore oilfield by 2027, while ExxonMobil has committed $1.5bn to deepwater projects. Local firms are also boosting output, plugging leaks and expanding production in safer Niger Delta fields.
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‎Beyond oil, Nigeria’s non-oil exports, cocoa, cashew nuts, and other agricultural products, are gaining competitiveness thanks to the weaker naira. Tinubu’s tax reforms are expected to further strengthen government revenues, laying the groundwork for broader economic diversification.
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‎As The Economist observes, “Improvements in macroeconomic stability are restoring investor confidence.” For a country long plagued by volatility, this renewed trust from global and local businesses signals that Nigeria may be entering a new era of resilience and opportunity.