Dublin, Ireland — Foreign investment inflow into the Nigerian oil and gas industry appreciated by 90.28 per cent to $101.82 million in 2021, from $53.51 million recorded in 2020.
According to data from the National Bureau of Statistics’ (NBS), Nigerian Capital Importation Report for the fourth quarter of 2021, the oil and gas sector accounted for 1.52 per cent of the total foreign capital of $6.7 billion imported into the country in 2021, compared to 0.55 per cent of the total capital of $9.68 billion imported into the country in 2020.
The increase in the inflow of foreign funds into the Nigerian oil and gas industry was coming in the wake of the resumption of global activities, with the easing of various restrictions on movement and business activities, globally, following the COVID-19 pandemic.
The pandemic, which caused almost all countries to shut down their economies for months beginning in early 2020, began to ease off in 2021, as vaccines were developed to combat the virus, along with other measures which helped curtailed its spread among people.
As a result, most countries ended their lockdown in the third and fourth quarters of 2021, leaving only a few countries still having different levels of restrictions.
Giving a breakdown of the funds imported into the country in 2021, the NBS stated that in the first and second quarter of 2021, $57.25 million and $11.32 million foreign capital were imported into the country, respectively; while $0.94 million and $32.31 million were recorded in the third and fourth quarter, respectively.
In comparison, the statistics agency disclosed that in 2020, $10.09 million, $6.55 million, $25.03 million and $11.83 million were imported into the country in the first, second, third and fourth quarter respectively.
Specifically, in its analysis of capital importation into the country in the fourth quarter of 2021, the NBS stated that the total value of foreign funds inflow into the country stood at $2.188 billion, from $1.731 billion in the preceding quarter, showing an increase of 26.35 per cent.
It noted that when compared to the corresponding quarter of 2020, capital importation increased by 109.28 per cent from $1.045 billion, adding that the largest amount of capital importation by type was received through other investment, which accounted for 54.24 per cent ($1.186 billion).
This, the NBS said, was followed by portfolio investment, with 29.39 per cent ($642.87 million), while Foreign Direct Investment (FDI) amounted to 16.38 per cent ($358.23 million) of total capital imported in the fourth quarter of 2021.
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