Nigeria is often described as a land of vast opportunities, yet its promise remains dimmed by persistent risks that scare away investors. From political uncertainty and policy inconsistency to infrastructure gaps and regulatory bottlenecks, the story is the same; potential collides with perception. The result is hesitation, capital flight, and missed opportunities.
This does not have to be Nigeria’s story. Around the world, countries with similar challenges have deliberately created frameworks to reduce risks, boost investor confidence, and attract long-term capital. The question is not whether Nigeria has potential but whether it can build systems that make investment safe, productive, and rewarding.
Investment thrives where risk is predictable and manageable. For Nigeria, the absence of such predictability has been costly. The economy remains heavily dependent on oil revenues, which account for around 90 per cent of foreign exchange earnings. Yet, volatility of oil and global shifts towards renewable energy mean that dependence is unsustainable. Diversification must shift from being used as a mere slogan and now take its active role in national survival strategy.
De-risking is not abstract, rather it requires the involvement of execution and practical steps – policy reforms that create clarity and consistency because investors thrive on rules they can trust; infrastructure development particularly to stabilise power, build roads, and ports in order to lower transaction costs; stronger institutions that guarantee transparency and accountability and lastly, partnerships with development finance institutions, such as the African Development Bank and Afreximbank, which can absorb some risks in private capital.
These strategies are already being tested elsewhere. Ghana, for instance, has built industrial parks in partnership with private players. Nigeria must adapt these lessons to its unique context. Nigeria being a critical continental player can leverage on several continent-wide initiatives to de-risk and attract investments. For instance, ARISE Integrated Industrial Platforms (Arise IIP), has a partnership with the African Finance Corporation to drive African industrialisation and economic development. The partnership generated a $100 million fund to help African entrepreneurs in areas of trade, job creation and sustainable infrastructural development. Benin Republic has plugged into this initiative to build the Glo-Djigbé Industrial Zone (GDIZ), which is a 1,640-hectare industrial hub that specialises in agro-processing, textile and manufacturing with plans to attract up to $1.4 billion in investment and create 300,000 jobs by 2030.
For Nigeria however, there are glimmers of progress. The Lekki Deep Sea Port, developed through a public-private partnership, is one such example of risk-sharing that attracted international investment. The project is already reshaping Nigeria’s logistics landscape, providing world-class facilities and easing the burden on the Apapa Port.
Similarly, the Nigerian Sovereign Investment Authority (NSIA), through its Nigeria Infrastructure Fund (NIF), one of the three funds under its management, was created to channel investment into critical domestic infrastructure and stimulate growth while attracting both local and foreign capital. The NIF has begun financing projects such as motorways and power plants, signalling to investors that the government is ready to share risk. These initiatives, while promising, remain too few and far between. Scaling them up is essential if Nigeria is to compete in the global investment race.
Investor confidence is also shaped by how rating agencies view Nigeria. Sovereign ratings from S&P Global, Fitch, or Moody’s directly affect the cost of borrowing on international markets. Nigeria’s current ratings reflect concerns about debt sustainability, policy uncertainty, and security challenges. To reverse this, the government must demonstrate fiscal discipline, improve revenue collection, and manage debt transparently. Nigerian agencies such as Agusto & Co. are helping provide more nuanced assessments of local realities, but credibility still depends on reforms.
Nigeria’s size is its greatest asset. With over 220 million people, the domestic market is among the largest in the world. This scale offers unique opportunities for manufacturers, technology firms, and service providers. The African Continental Free Trade Area (ACFTA) further expands this prospect, enabling Nigerian producers to access a continental market of 55 countries – 1.3 billion people with a combined GDP of $3.4 trillion.
The World Bank has estimated that the ACFTA has the potential to increase Africa’s exports by $560 billion, mostly in manufacturing. But size alone is not enough. Without de-risking, the market becomes a wasted opportunity. Investors may choose to site factories in smaller, more predictable economies, targeting Nigerian consumers from outside.
Nigeria cannot afford to keep losing ground. De-risking must become a deliberate national strategy, not an occasional talking point. Government must prioritise power generation, streamline regulations, and rebuild public trust in institutions. The private sector must push for accountability while embracing innovation and transparency. Development partners must be leveraged as allies, not treated with suspicion.
Most importantly, leadership must move from rhetoric to measurable results. For every policy announced, the question must address risk reduction for businesses and creation of job opportunities. Nigeria’s challenge is not lack of potential but lack of preparation. Investors are watching, weighing risks against rewards. If Nigeria can show it is serious about reducing uncertainty, capital will flow not as charity, but as mutually beneficial investment.
