By MICHAEL EBOH
The Nigerian oil and gas sector attracted foreign investment, totaling $330.757 million, about N52.921 billion in the last 15 months, according to data released by the National Bureau of Statistics,NBS.
According to a report by the NBS, titled: “Nigerian Capital Importation: summary report 2007 – 2014,” the oil and gas sector recorded total foreign investment inflow of $129.621 million in 2013 and $201.136 million in the first quarter of 2014.
The report further revealed that the Nigerian oil and gas sector attracted FDI totaling $714.258 million, about N114.281 billion between 2009 and the first quarter of 2014.
A breakdown of the figure revealed that in 2009, FDI in the oil and gas sector stood at $114.356 million, dropping by 82.17 per cent from $641.266 million recorded in 2008.
In 2010, total capital importation in the oil and gas sector stood at $89.449 million, 2011 — $22.924 million; 2012 — $156.772 million and 2013 — $129.620 million.In general, the NBS report noted that total capital importation in the country for 2009 stood at $5.703 billion; 2010 — $5.996 billion; 2011 — $7.904 billion; 2012 — $16.616 billion; 2013 — $21.318 billion and first quarter 2014 — $3.905 billion.
To this end, the oil and gas sector accounted for 2.005 per cent of the total capital importation into the country in 2009; 1.49 per cent of the total in 2010; 0.29 per cent of the total capital importation in 2011; 0.94 per cent of the total in 2012; 0.61 per cent in 2013 and 5.15 per cent of the total in the first quarter of 2014.
Giving an analysis of the inflow into the country in the period, the NBS said, “Prior to the global financial crisis, Nigerian capital importation was high and rising; it grew 16.7 per cent from $9.573 billion recorded in 2007 to reach $11.171 in 2008.
“The onset of the crisis brought a sharp decline in capital imported to half its value, at $5.703 billion in 2009. Some of the greatest declines came from the banking and shares sectors, with annual totals of $2.047 billion and $1.814 billion, representing a 43.7 per cent and 53.0 per cent decline respectively from the preceding year.
“The Financing and Oil and Gas sectors also took a large hit, declining by 69.2 per cent and 82.2 per cent respectively, translating to a decline of over $500 million in each activity from 2008.
“In 2010 the value of capital imported remained depressed, increasing by a marginal 5.1 per cent to $5.996 billion. A slow recovery began in 2011, as capital importation increased by 31.8 per cent, yet inflows remained $3.267 billion below 2008 levels.
“It was not until 2012 that a transformational upturn took hold in Nigeria, whereby the value of capital imported increased by 110.2 per cent to $16.616 billion; 72.6 per cent greater than the pre-crisis level.
“The main driver of this was the Shares business, in which an additional $7,642.7 million was imported from 2011 levels, a 72.5% rise from the previous year. Banking also saw a recovery, with a $740.7 million, or 65.3% increase from 2011. Yet some sectors remained in decline; Financing, Telecommunications and Brewing reported lower levels of importation by $443.3 million, $193.1 million and $71.366 billion from 2011 respectively.
This may have implied less profitability of the real sector relative to the financial sector, thus reallocating investments away from the real sector.