This study examines the role of political stability in attracting foreign direct investment (FDI) by analyzing government policies, business security, and infrastructure development. Guided by Dunning’s Eclectic Paradigm, the study explores how ownership, location, and internalization advantages influence investment decisions. Using a qualitative research design, secondary data from reports, policy documents, and scholarly articles were analyzed through thematic analysis. Findings reveal that political stability enhances investor confidence, while policy inconsistency deters long-term capital commitments. A secure business environment is vital for attracting investment, as insecurity, cyber threats, and political instability heighten risks. Furthermore, inadequate infrastructure, particularly in transportation, electricity, and digital connectivity, increases operational costs and discourages investors. The study concludes that a stable, secure, and well-structured investment climate is essential for fostering sustainable economic growth in Nigeria. Recommendations include strengthening governance transparency, ensuring policy consistency, enhancing security measures, and prioritizing infrastructure development to create a conducive environment for foreign investment.