LCCI: Nigeria Emerging as One of Africa’s Top Performers in FDI Attraction

•Calls for more action from FCCPC in price regulation

Dike Onwuamaeze

The Lagos Chamber of Commerce and Industry (LCCI) has declared that Nigeria is emerging as one of Africa’s top performers in the attraction of Foreign Direct Investment (FDI), despite the geopolitical uncertainty bedevilling the global economy.

The declaration was made yesterday by President of LCCI, Mr. Leye Kupoluyi, in his address on the “State of the Economy”.

Kupoluyi also called on the Federal Competition and Consumer Protection Commission (FCCPC) “to be more vigilant on the price regulatory environment because we have had cases where oil marketers raised pump prices in line with international crude oil prices, but held on to current prices when international prices fell”.

He said, “Africa recorded a modest improvement in investment inflows, with Nigeria emerging as one of the continent’s top performers after FDI increased by 148.4 per cent to $4.01 billion in 2025, driven largely by oil and gas project finance.”

Though, the UNCTAD World Investment Report 2026 showed that global FDI remained below pre-pandemic levels due to geopolitical uncertainty, subdued cross-border mergers and acquisitions, and cautious investor sentiment.

Kupoluyi stated that the evolving global economic environment presented Nigeria with both opportunities and risks that underscored the need for flexible, agile, and forward-looking policies to preserve macroeconomic stability and strengthen long-term growth.

He pointed out that higher crude oil prices resulting from geopolitical tensions might temporarily boost export earnings, government revenue, and external reserves, but said prolonged disruptions could sustain inflation through higher energy, transportation, fertiliser, and import costs.

Kupoluyi, therefore, advised, “Nigeria should maintain a prudent, data-driven monetary policy to anchor inflation expectations while ensuring clear communication of policy to strengthen market confidence.

“Fiscal policy should focus on rebuilding buffers through stronger domestic revenue mobilisation, improved public expenditure efficiency, and debt sustainability, while providing only temporary, well-targeted support to vulnerable households and businesses.”

He also advised, “Untargeted subsidies and price controls should be avoided, as they weaken price signals, increase fiscal costs, and discourage energy efficiency.”

Commenting on monetary policy, especially the retention of the Monetary Policy Rate (MPR) at 26.50 per cent by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), LCCI said this decision underscored CBN’s commitment to preserving price stability, anchoring inflation expectations, safeguarding exchange rate stability, and strengthening macroeconomic resilience amid heightened global uncertainty and external shocks.

It stated, “The decision to retain the key monetary policy parameters has important implications for businesses and the broader Nigerian economy.

“By maintaining the MPR at 26.50 per cent, the MPC reaffirmed its commitment to preserving price and exchange rate stability while containing inflationary pressures, particularly those arising from external shocks and heightened global uncertainty.

“However, for businesses, the decision implies that borrowing costs will remain elevated in the near term, potentially constraining private sector investment, business expansion, and access to affordable credit, particularly for micro, small, and medium enterprises (MSMEs).”

The chamber added, “The sustained tight monetary stance is expected to support exchange rate stability, improve investor confidence, and reduce foreign exchange volatility, thereby enhancing business planning and reducing currency-related risks.

“For the Nigerian economy, the MPC’s decision reinforces macroeconomic stability by sustaining the disinflation process while maintaining confidence in the financial system.

“Although higher interest rates may moderate economic growth in the short term by dampening private investment and consumer spending, they are expected to help contain inflation, strengthen external reserves, preserve exchange rate stability, and improve the economy’s resilience to global shocks.”

 LCCI recommended complementary fiscal and structural reforms aimed at boosting domestic production, improving infrastructure, enhancing revenue mobilisation, and reducing the cost of doing business as essential to maximising the gains of MPC’s stance.

The president of LCCI also spoke on Nigeria’s rising debt profile, which he attributed to continued borrowing to finance fiscal deficits and the valuation impact of exchange rate movements on external debt. 

He, however, said the current “higher crude oil prices and improved oil production in 2026 are expected to generate an oil revenue windfall” that could strengthen government revenues, support external reserves, reduce borrowing requirements, and enhance exchange rate stability”.

Kupoluyi said, “Consequently, the anticipated oil windfall should be used prudently to reduce debt, rebuild fiscal buffers, strengthen external reserves, and finance critical infrastructure rather than expand recurrent expenditure.”

He added, “Accelerating non-oil revenue mobilisation, improving tax administration, and enforcing fiscal discipline remain essential for long-term debt sustainability.”

While urging FCCPC to be more vigilant, the LCCI stated the need to study the dynamics at play and in order to secure the best deal for consumers and businesses against cases of price-fixing by local airlines during peak festive seasons.

“We are not calling for price control but for price regulation in line with international best practices,” the chamber said.