Foreign investment inflow into the Nigeria’s oil and gas industry rose by 259 per cent to $85.62 million in the first quarter of 2018, according to data obtained from the National Bureau of Statistics, NBS.
The seized money. This, according to the NBS Nigerian Capital Importation Report for the First quarter of 2018 released recently, represented an improvement of $61.79 million from $23.83 million capital inflow recorded in the fourth quarter of 2017.
However, the capital imported into the sector in the period under review was 15.3 per cent lower than the $101.08 million capital imported into the sector in the first quarter of 2017. Specifically, the oil and gas sector recorded capital importation of $101.08 million, $190.39 million, $16.07 million, $23.83 million and $85.62 million for first, second, third and fourth quarters of 2017 and first quarter of 2018 respectively.
Giving a breakdown of the inflows in the first quarter, the report stated that in January, February and March 2018, $22.12 million, $4.05 million and $59.45 million capital were imported into the oil and gas sector respectively.
The report stated that the first quarter in 2018 saw a continuous growth in total Capital Importation into Nigeria, the fourth consecutive quarterly increase since the second quarter of 2017.
It further noted that the total value of capital imported in the quarter stood at $6.304 billion, which is a year-on-year increase of 594.03 per cent and a 17.11 per cent growth over the figure reported in the previous quarter.
“This increase in capital inflow in first quarter 2018 was driven mainly by Portfolio Investment, which grew from $3.477 billion in the previous quarter to $4.565 billion, accounting for 72.42 per cent of the total Capital Importation during the quarter,” the NBS declared.
In addition, the report noted that in the first quarter of 2018, Banking remained the leading sector for foreign capital inflow which attracted the most considerable amount of capital investment. According to the report, during the first quarter, $1.18 billion overseas investment flowed to the Banking sector, which accounted for 18.7 per cent of the total Capital Importation.
It added: “Financing exceeded Production, Servicing and Telecoms sectors to become the second leading sector to receive capital investment, attracting $485.41 million during the quarter. This was followed by the Servicing sector with $328.15 million; Production sector with $144.09 million and Agriculture with $130.90 million.
“These five economic sectors mentioned above together attracted more than 90 per cent of foreign capital investment in the first quarter of 2018.” It further stated that “Telecommunications, which ranked fourth in the fourth quarter of 2017, only had a total of $87.25 million foreign capital investment in the first quarter of 2018, declining by 54.32 per cent from $191.01 million recorded in the last quarter.
“Capital inflow to other sectors including Drilling, Electrical, Marketing, Oil and Gas, and Trading increased significantly compared to the fourth quarter of 2017, although the absolute values to these sectors remained smaller than the sectors discussed in the previous paragraph.”
The report added that the United Kingdom kept its leading role in capital investment in Nigeria in the first quarter of 2018, with $2.25 billion capital invested in Nigeria.
It noted that this inflow accounted for 35.73 per cent of the total of capital inflow in first quarter 2018, also representing a 39.89 per cent increase from the previous quarter and a growth of 644.55 per cent over the corresponding period of last year.