Abuja — A significant decline was recorded in foreign investment in the Nigerian petroleum industry, as Foreign Portfolio Investment inflow into the Nigerian oil and gas industry dipped by 46.67 per cent to $20.62 million in the fourth quarter of 2019, compared to $38.66 million recorded in the third quarter of 2019.
According to data obtained from the National Bureau of Statistics’, NBS, Nigerian Capital Importation Report for the Fourth Quarter of 2019, the foreign capital imported into the oil and gas sector, however, represented an improvement of 34.68 per cent compared to the $15.31 million foreign capital imported into the sector in the fourth quarter of 2018.
The report further highlighted that the petroleum industry accounted for 0.54 per cent of total foreign capital of $3.8 billion imported into the country in the fourth quarter of 2019; compared to 0.69 per cent of total capital imported in the third quarter of 2019 and 0.72 per cent of total foreign capital imported in the fourth quarter of 2018.
Specifically, the report noted that total foreign capital imported into the country in the third quarter of 2019 and fourth quarter of 2018 stood at $5.63 billion and $2.14 billion respectively.
In general, the NBS stated that the total value of capital importation into Nigeria stood at $3.802 billion in the fourth quarter of 2019, representing a decline of 32.42 per cent when compared to the third quarter of 2019, and a 77.67 per cent increase when compared to the fourth quarter of 2018.
It said, “Similarly, the total value of capital importation in 2019 stood at $23.990 billion, compared to $16.812 billion in 2018, representing a growth of 42.69 per cent between the two periods.
“The largest amount of capital importation by type was received through Foreign Portfolio Investment (FPI), followed by Other Investment and Foreign Direct Investment (FDI).”
The NBS had stated that foreign investment inflow into the Nigeria oil and gas industry declined sharply by 59.7 per cent to $133.51 million in 2018, compared to $331.36 million recorded in 2017.
In its analysis of 2018 foreign capital importation, the NBS had revealed that in the first quarter of 2018, the petroleum industry recorded the highest foreign capital inflow, with $85.62 million.. Further analysis revealed that foreign investment inflow depreciated by 70.97 per cent to $24.85 million in the second quarter of 2018, dropping further by 68.9 per cent to $7.73 million in the third quarter of 2018, while in the fourth quarter, $15.31 million foreign investment flowed into the sector, representing an improvement of 98.06 per cent compared to the third quarter figure.