Report: Petroleum Sector Attracts $5m Foreign Investment as Dangote Begins Production

• The second quarter of this year saw only $5 million in foreign investment in Nigeria's oil and gas sector
• According to recent study, just 0.19% of the $2.6 billion in capital imports came from the oil sector
• The largest oil-producing country in Africa received $3.64 million in capital imports from the industry in 2023

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Nigeria's oil and gas industry received $5 million in foreign investment in the second quarter of this year, after recording no investment in the first quarter.

The National Bureau of Statistics included this information in its report on capital imports data for the second quarter of 2024.

The research claims that the oil industry only accounted for 0.19 percent of the $2.6 billion in capital imports that were recorded between April and June, while the banking industry grabbed the lead with $1.12 billion, or 43.15 percent.

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Foreign capital investments declining

According to the PUNCH, foreign capital investments in the oil and gas industry fell from $720 million in 2016 to $3.64 million in 2023.

The $5 million in capital imports for the petroleum industry in Q2 2024 represents a minor improvement over the zero recorded in the previous quarter.

According to information obtained, foreign capital investments in the petroleum industry have been decreasing over time.

Capital imports for the sector were $750,000 in the first quarter of 2023, nil in the second, $850,000 in the third, and $2.04 million in the final quarter.

In 2023, the industry brought $3.64 million in capital imports into the biggest oil-producing nation in Africa.

The development came as the 650,000 barrels per day Dangote Petroleum Refinery commenced diesel and aviation fuel production in January. The $19 billion refinery also recently began petrol production.

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CBN grants $2.97bn to import fuel

Legit.ng reported that the Central Bank of Nigeria has given oil industry participants access to $2.97 billion in funding for the importation of petroleum products and related goods into the nation.

The quantity provided between 2022 and the first quarter of 2024 is in light of Nigeria's severe energy situation, the scarcity of fuel, and marketers' insistence on importing fuel even if Dangote Refinery is supplying petrol.

The Punch reported that the country's foreign reserves and the naira-to-dollar exchange rate are impacted by fuel imports, a major consumer of foreign cash.

Source: Legit.ng