AGS NEWS – Despite government efforts to attract foreign investment in the oil and gas sector, Nigeria’s foreign capital investments in the industry plummeted from $720 million in 2016 to just $3.64 million in 2023.

The National Bureau of Statistics reported no foreign capital investment in the first quarter of 2024. Of the $3.38 billion in total capital importation to Nigeria during this period, none went to the petroleum industry.

The banking sector saw the highest capital inflow, receiving $2.07 billion, followed by the trading sector with $494.93 million and the manufacturing sector with $191.92 million.

Other sectors such as marketing, consultancy, and construction received minimal inflows, while the oil and gas sector received none.

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In 2023, the petroleum sector’s foreign capital investments were minimal, totaling $3.64 million, down from $6.37 million in 2022. The sector’s capital importation peaked at $720 million in 2016 but has since declined sharply.

Experts, like Professor Wumi Iledare, attribute this decline to investors’ lack of confidence in Nigeria’s business environment and the misimplementation of the Petroleum Industry Act (PIA).

Iledare emphasized the need for clear separation of roles between the Nigerian National Petroleum Company (NNPC) and industry regulators to restore investor confidence.

NNPC Group Chief Executive Officer Mele Kyari has also cited oil theft and vandalism as significant deterrents to investment, highlighting the economic damage caused by illegal activities in the sector.