Foreign investment inflow to Nigeria’s oil sector drops to 51% worth $10m

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Lagos — Foreign investment inflow into the Nigerian oil and gas industry stood at $10.09 million in the first quarter of 2020, dropping by 51.07 per cent from $17.22 million recorded in the fourth quarter of 2019, according to data released by the National Bureau of Statistics, NBS.

In its National Capital Importation Report for the First of 2020, the NBS stated that foreign investment inflow into the oil and gas sector in the first quarter of 2020 accounted for 0.17 per cent of total inflow into the Nigerian economy in the period under review.

The NBS further stated that the inflow into the sector in first quarter 2020 was 41.41 per cent lower than the $17.22 million inflow into the sector recorded in the same period in 2019.

The NBS also stated that total foreign capital inflow into the oil and gas sector in 2019 stood at $216.23 million, representing 0.9 per cent of total inflow into the economy in the year.

The NBS noted that the total value of capital importation into Nigeria stood at $5.854 billion in the first quarter of 2020, stating that this represented an increase of 53.97 per cent compared to fourth quarter 2019 and 31.19 per cent decrease compared to the first quarter of 2019.

The NBS said, “The largest amount of capital importation by type was received through Portfolio investment, which accounted for 73.61 per cent ($4,309.47m) of total capital importation, followed by other Investment, which accounted for 22.73 per cent ($1.33 billion) of total capital, and then Foreign Direct Investment FDI, which accounted for 3.66 per cent ($214.25 million) of total capital imported in the first quarter of 2020.”

The NBS report further noted that the banking sector recorded the highest foreign capital inflow in the quarter under review, as foreign investment inflow into the sector stood at $2.99 billion.

The NBS said, “By sector, Capital importation by banking dominated first quarter 2020 reaching $2.990 billion of the total capital importation in the first quarter of 2020.

“The United Kingdom emerged as the top source of capital investment in Nigeria in first quarter 2020 with $2.909 billion. This accounted for 49.68 per cent of the total capital inflow in first quarter 2020.

“By destination of investment, Lagos state emerged as the top destination of capital investment in Nigeria in first quarter 2019 with $5,135.49m. This accounted for 87.72% of the total capital inflow in Q1 2020.

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