Michael Eboh
Dublin, Ireland — A significant improvement was recorded in the influx of foreign investment into the Nigerian oil and gas industry as foreign capital inflow into the industry grew to $5 million in the second quarter of 2024, compared with zero inflow both in the same period in 2023 and the first quarter of 2024, respectively, according to economic data released by the National Bureau of Statistics (NBS).
The NBS, in its Foreign Capital Importation report for the second quarter of 2024, stated that foreign investment inflow into the Nigerian oil and gas industry accounted for 0.19 per cent of the total foreign capital inflow of $2.605 billion recorded in the Nigerian economy in the period under review.
According to the NBS data, the value of foreign capital imported into the oil and gas industry in the second quarter of 2024 was 37.36 per cent higher than the amount imported into the sector in the whole of 2023.
Specifically, in the first quarter of 2023, foreign investment inflow of $750,000 was recorded in the oil and gas industry; in the second quarter of 2023, no inflow was recorded, while in the third and fourth quarter of 2023, $850,000 and $2.04 billion inflow were recorded, respectively.
In its analysis of foreign investment in the period under review, the NBS stated that in the second quarter of 2024, total capital importation into Nigeria stood at $2.605 billion, 152.81 per cent higher than the $1.030 billion recorded in the second quarter of 2023.
In comparison to the preceding quarter, the NBS reported that capital importation declined by 22.85 per cent from $3.376 billion recorded in the first quarter of 2024.
Giving a breakdown of the components of the inflow, the NBS stated that Portfolio Investment ranked top with US$1.405 billion, accounting for 53.93 per cent, followed by Other Investment with $1.169 billion, accounting for 44.92 per cent; while Foreign Direct Investment recorded the least with $29.83 million (1.15%) of total capital importation in the period under review.
It added that, “The banking sector recorded the highest inflow with $1.124 billion, representing 43.15 per cent of total capital imported in second quarter of 2024, followed by the production/manufacturing sector, valued at $624.71 million (23.99 per cent of total capital imported), and trading sector with $569.22 million (21.86 per cent of total).”
The statistics agency further stated that capital Importation during the reference period originated largely from the United Kingdom with $1.120 billion, representing 43.01 per cent of the total capital imported.
This, it said, was followed by the Netherlands with $577.82 million (22.19 per cent of total capital imported) and the Republic of South Africa with $255.98 million (9.83 per cent of total capital imported).
“Out of the three states that recorded capital importation during the quarter, Lagos state remained the top destination with $1.368 billion, accounting for 52.52 per cent of the total capital imported. Abuja (Federal Capital Territory) followed with $1.237 billion (47.48 per cent of total capital imported) and Ekiti state with $0.0003 million.
“Citibank Nigeria Limited received the highest capital importation into Nigeria in the second quarter of 2024, with $818.46 million (31.43 per cent of total capital imported), followed by Standard Chartered Bank Nigeria Limited with $654.79 million (25.14 per cent of total capital imported) and Rand Merchant Bank Plc with $488.59 (18.76 per cent of total capital imported),” the NBS reported.
