Foreign Investment in Oil Industry Rises by $15.3m in 3 Months

By March 14, 2019 NEWS

Foreign investment inflow into the Nigeria petroleum industry appreciated by 98.06 percent to $15.31 million in the fourth quarter of 2018, compared to $7.73 million recorded in the third quarter of 2018, according to data released by the National Bureau of Statistics, NBS.

The NBS, in its Nigerian Capital Importation Report for the Fourth Quarter of 2018, however, revealed that foreign capital inflow into the industry in the fourth quarter of 2018 represented a decline of 35.75 percent compared to an inflow of $23.83 million in the fourth quarter of 2017.

Analysis of the report pointed out that foreign capital inflow into the petroleum industry accounted for 0.72 percent of total capital imported into the Nigerian economy in the fourth quarter of 2018.

In general, the NBS said, “The total value of capital importation into Nigeria stood at $2.140 billion in the fourth quarter of 2018.

This represents a decrease of 25.05 percent compared to third quarter 2018 and 60.24 percent decrease compared to the fourth quarter of 2017.”

It further stated that the total value of capital importation into Nigeria stood at $16.812 billion in 2018 compared to $12.229 billion capital imported in 2017, representing a 37.49 percent growth year-on-year.

The report further stated that in 2018, foreign inflow into the petroleum industry accounted for 0.79 percent of total capital inflow into the general economy, compared to 2.71 percent in 2017.

In its analyses of inflow into the general economy in 2018, the NBS said, “The largest amount of capital importation by type was received through Portfolio investment, at $11.802 billion, which accounted for 70.20 percent of total capital importation, followed by Other Investment, at $3.815 billion which accounted for 22.69 percent of total capital, and the Foreign Direct Investment, FDI, at $1.195 billion, which accounted for 7.11 per cent of total capital imported in 2018.

“By sector, capital importation by shares, which is closely related to equity investment, (FDI and Portfolio Investment) dominated 2018 reaching $10.425 billion of the total capital Importation in 2018.

“The United Kingdom emerged as the top source of capital investment in Nigeria in 2018 with $6.008 billion.

This accounted for 35.74 percent of the total capital inflow in 2018.”

In its analysis of capital inflow into the general economy in the last quarter of 2018, the NBS said, “The total value of capital importation into Nigeria stood at $2.140 billion in the fourth quarter of 2018.

This represents a decrease of 25.05 percent compared to third quarter 2018 and 60.24 percent decrease compared to the fourth quarter of 2017.”

 

Source: Sweetcrudereports