Nigeria’s oil & gas sector gets zero investment in Q3 2024


*Oil-drilling-rig.

– As capital importation declines by 51.90%

Mkpoikana Udoma

Port Harcourt — Nigeria’s oil and gas sector received no recorded inflows in Q3 2024, as the country experienced a 51.90% decline in overall capital importation from $2.6 billion in Q2 2024 to $1.25 billion, the National Bureau of Statistics, NBS, has revealed.

Despite a year-on-year increase of 91.35% from the $654.65 million recorded in Q3 2023, in the period under review there has been no new investment in the oil and gas sector, Nigeria’s traditionally dominant industry.

Data obtained from NBS showed that portfolio investments led the inflow with $899.31 million, accounting for 71.79% of total capital imported. Other investments contributed $249.53 million (19.92%), while Foreign Direct Investment trailed at $103.82 million, just 8.29% of the total.

The banking sector attracted the highest inflow at $579.48 million, representing 46.26% of the total capital imported. This was followed by the financing sector with $294.55 million (23.51%) and the manufacturing sector with $189.22 million (15.11%).

The United Kingdom emerged as the top source of capital, contributing $502.60 million (40.12%), South Africa followed with $185.03 million (14.77%), while the United States accounted for $163.86 million (13.08%).

Lagos State maintained its lead as the top destination for capital importation with $650.41 million, representing 51.92% of the total. Abuja closely followed with $600.02 million (47.90%). Other states, including Kaduna, Enugu, and Ekiti, contributed marginal amounts.

Standard Chartered Bank Nigeria Limited facilitated the largest capital importation with $385.62 million (30.78%), followed by Stanbic IBTC Bank at $382.08 million (30.50%) and Citibank Nigeria Limited at $192.88 million (15.40%).

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This article was originally posted at sweetcrudereports.com

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