Government efforts to attract foreign investors to Nigeria’s oil and gas sector have seen limited success, with the sector securing only $5 million in foreign investments during Q2 2024. This follows a complete lack of investment in the first quarter, according to the National Bureau of Statistics (NBS) capital importation report.
Of the $2.6 billion in total capital imported between April and June, the oil sector accounted for just 0.19%, while the banking sector led with $1.12 billion (43.15%).
Foreign investment in the oil and gas sector has plummeted dramatically, dropping from $720 million in 2016 to a mere $3.64 million in all of 2023, The PUNCH reported. The sector’s capital importation has seen a consistent decline, with only $6.37 million recorded in 2022 and $101 million in 2021, marking a sharp contrast to its $208 million intake in 2014 and $720 million peak in 2016.
Experts attribute the downturn to investor skepticism about whether the Petroleum Industry Act has effectively transformed Nigeria’s business environment.
Foreign capital importation, a critical economic driver, includes investments in assets, short-term loans, deposits, and financial resources, but Nigeria’s petroleum sector continues to struggle in attracting these funds.
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