Oil and Gas Sector Attracted N2.87 billion Worth of Foreign Investments – NBS

Oil and gas

The National Bureau of Statistics (NBS) through its Nigerian Capital Importation report for Second Quarter (Q2) 2015, disclosed that the oil and gas sector attracted $14.34 million, about N2.87 billion worth of foreign investments in the first half (HY1) of 2015. According to the Nigerian Capital Importation (NCI) report , this amounts to an appreciation of 347.36 per cent or $11.133 million (N2.23 billion) increase from the $3.205 million (N641 million) recorded in the sector in the second half of 2014.

The bureau further explained that the amount was 93 per cent lower than the $204.97 million (N40.99 billion) year on year in 2014, just as there was a sharp decline in second quarter of 2015. The NCI report noted that capital importation into the sector in second quarter of 2015 stood at $4.86 million, down by 48.65 per cent to $4.609 million (N921.8 million) from the $9.473 million (N1.89 billion) realised in Q1 2015. Capital importation, the NBS noted, remained relatively unchanged from the $2.67 billion recorded in the opening quarter of 2015.

It suggested that this new lower level would be maintained as long as an uncertain economic environment remains. Year on year, it pointed out that the second quarter capital imported was $3.137 billion or 54.06 per cent lower than the $5.803 billion imported in the second quarter of 2014. Based on further breakdown as reported by Energy- News, an online portal, portfolio investment remained the largest of all investment types, totaling $2.183 billion in quarter two 2015 or 81.88 per cent of all capital imported. This is $322.50 million or 17.33 per cent higher than the $1.861 billion recorded in first quarter of 2015, which was 69.65 per cent of the total.

However, the report said year-on-year the decline remained large at $2.734 billion or 55.60 per cent. The key driver of the quarterly growth observed, according to the report, was equity, which at 84.56 per cent of portfolio investment, increased by $706.70 million or 62.02 per cent from the preceding quarter.

 

[Newtelegraph]

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