UK pledges closer partnership with Nigeria to boost reforms, attract investment, and improve business environment for economic growth.
The United Kingdom has expressed its commitment to working side-by-side with Nigeria to strengthen implementation, reduce bottlenecks, and create a more predictable business environment that unlocks investment opportunities, creates jobs and supports long-term growth.
UK’s Head of Macroeconomic Stability in the British High Commission, Nigeria, Alice Clarke, gave the indication, weekend while speaking at ‘The Reform and Diplomatic Roundtable 2026’, organised by PEBEC in collaboration with the UK International Development and Nigeria Economic Stability and Transformation (NEST).
NEST is a UK–Nigeria partnership programme under the British High Commission, focused on supporting macroeconomic reforms and improving the business environment in the country.
According to her, “Businesses don’t experience reform in theory. They feel it in permits, power connections, and how institutions respond when things go wrong. Today’s assessment gives us a clear picture of where progress is happening and where consistency must improve.
“The UK is committed to working side-by-side with Nigeria to strengthen implementation, reduce bottlenecks, and create a more predictable business environment that unlocks investment opportunities, creates jobs and supports long-term growth.”
Presenting Nigeria’s Investment Outlook 2026, “From Reform to Real Capital Deployment,” leveraging top reform-performing states as global capital gateways, a NEST expert, Mr. Afolabi Imoukhuede, noted that Nigeria’s 2026 investment outlook is “cautiously positive”, citing the Central Bank of Nigeria (CBN) position in January.
He observed that Nigeria is re-entering the investment radar, with macroeconomic reforms improving credibility, FX, fiscal and policy adjustments stabilising outlook.
The NEST expert, who also referenced the International Monetary Fund’s recent projection that Nigeria’s economy would grow by 4.4 per cent in 2026, noted that investor sentiment is cautiously returning.
However, Imoukhuede explained that investment capital remains selective, risk-aware, and sector-driven.
According to him, the economy is attracting capital inflows, which are usually dominated by short-term portfolio capital, adding that FDIs were needed in the real sector of fhe economy.
Imoukhuede submitted that while strong FDIs into the real sector remain imperative, Nigeria must convert macroeconomic stabilisation to real sector investment bankable assets, move from passive inflow to targeted deployment, and target FDIs into real sectors that earn/save FX and boost job creation, as well as prioritise production.
Imoukhuede listed real sectors where the FDIs should be deployed include agriculture and agro-processing, manufacturing and industrial clusters, logistics and trade infrastructure, power, renewable energy and green jobs.
Others are mining, digital and creative economy, as well as housing and construction materials, adding that focus should be on FX-earning and job-creating sectors.
The NEST expert prescribed that the top ten states in the PEBEC Ease of Doing Business (EoDB) ranking should not end up with just ranking, but be pre-packagedi investment destinations designated as FDI ‘Landing Zones’
He explained that they represent a number of positive signals, including faster approvals, more predictable regulation, better land and permit systems, improved justice system, and stronger investor engagement.
Others are dgital governance improvements, and investor aftercare, adding that lower execution risk translates to higher unvestment
In a keynote addres titled “National Development Planning as a Catalyst for Subnational FDI,” the Minister of Budget and Economic Planning, Senator Abubakar Atiku Bagudu, observed that the nation’s federal structure confers states and local governments significant authority, including the ability to enter into contracts and operate their own court systems, thereby ensuring that their actions are critical to attracting investment and driving economic growth.
He stated that Chapter 2 of the Federal Constitution which is the Fundamental Objectives and Direct Principles of State conveys three distinct elements, including recognising Nigeria as a constitutional market economy, a constitutional Federation, adding that Section 13 of the Constitution requires the three tiers of government, and indeed, all those in authority to work together to observe and achieve those fundamental objectives.
Bagudu said Nigeria’s ambition to build a $1 trillion economy by 2030 would depend largely on the role of states and the private sector.
“We feel confident that with that mindset, led by the private sector, we can create a $1 trillion economy, supported by the response that our economy has experienced to doing what is right,” he said.
According to him, competition among states, supported by reforms and development programmes backed by institutions such as the World Bank, has encouraged improved economic performance across the country.
The minister maintained that the nation’s entrepreneurial population remains a strong advantage, stressing that citizens across all states possess similar drive and capacity for innovation and hard work.