Foreign investment in Nigeria’s oil and gas sector falls to zero in Q2 2023

Research Team

6 hours ago

https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-3735192167361340&format=300×250&w=300&h=250&ptt=12&iu=8819159066&adk=3617822317&output=html&bc=7&pv=2&wgl=1&asnt=0-856901536285876090&dff=Georgia%2C%20%22Times%20New%20Roman%22%2C%20Times%2C%20serif&brdim=0%2C0%2C0%2C0%2C375%2C0%2C375%2C667%2C375%2C627&ifi=4&pfx=0&adf=1340388052&nhd=0&adx=16&ady=502&oid=2&is_amp=5&amp_v=2310111731000&d_imp=1&c=51712008110&ga_cid=amp-I51cckA7oqQWWUkZ-1MX2Q&ga_hid=8110&dt=1698408627541&biw=375&bih=627&u_aw=375&u_ah=667&u_cd=32&u_w=375&u_h=667&u_tz=60&u_his=4&vis=1&scr_x=0&scr_y=66&url=https%3A%2F%2Fnairametrics.com%2F2023%2F10%2F27%2Fforeign-investment-in-nigerias-oil-and-gas-sector-falls-to-zero-in-q2-2023%2F&loc=https%3A%2F%2Fnairametrics.com%2F2023%2F10%2F27%2Fforeign-investment-in-nigerias-oil-and-gas-sector-falls-to-zero-in-q2-2023%2F%3Famp%3D1&ref=https%3A%2F%2Fwww.google.com%2F&bdt=2386&dtd=15&__amp_source_origin=https%3A%2F%2Fnairametrics.com

The Nigerian oil and gas industry was totally sidelined by foreign investors in Q2 2023 for the first time on record, as the once lucrative sector attracted no capital inflow in the review quarter.

This is according to analysis of data from the National Bureau of Statistics (NBS).

Nigeria recorded a total of $1.03 billion as capital importation in Q2 2023, slightly lower than the $1.13 billion recorded in the previous quarter, which is also 32.9% lower than the $1.54 billion recorded in the corresponding period of 2022. It is also worth noting that the Q2 2023’s figure is the lowest since the second quarter of 2021.

A further breakdown of the data from the NBS indicates that most of the foreign inflows during the period came into the country as loans, accounting for 74.9% of the total capital import. Meanwhile, foreign direct investment which was $86.03 million accounted for 8.4%, while foreign portfolio investment with $106.85 million accounted for 10.4% of the total.