The Nigerian Natural Resource Charter (NNRC) has revealed that Foreign Direct Investment (FDI) in Nigeria’s oil sector dropped by $17.12m in the third quarter of 2018.
According to the NNRC’s statement on Wednesday, foreign direct investments in the sector plunged from $24.85m in the second quarter of 2018 to $7.73m in the third quarter of the year.
The $17.12m drop represents a 68.9 per cent decline in FDI when compared to what was recorded in the preceding quarter.
It added, “Foreign capital inflow in the industry dipped by 68.9 per cent to $7.73m in the third quarter compared with $24.85m foreign capital recorded in the second quarter of 2018.”
The NNRC also stated that the foreign capital inflow into the oil sector in the third quarter of last year was over 50 per cent less than what was recorded in 2017.
However, it noted that the first quarter of 2018 recorded the highest foreign capital inflow in the sector in the period under review, as over $80m worth of investments came into the sector.
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This was short-lived amidst repeated declines in the second and third quarters of last year, the NNRC stated.
The NNRC said, “The value of foreign capital inflow into the industry in the third quarter of 2018 was 51.9 per cent lower than the $16.07m in the third quarter of 2017.
“In 2018, the first quarter foreign capital inflow was the highest with $85.62m, dropping by 70.98 (per cent) to $24.85m in the second quarter of 2018; while it dropped further by 68.9 per cent to $7.73m in the third quarter of 2018.”
Corroborating the dire need for investment in the sector, the Minister of State for Petroleum Resources, Ibe Kachikwu, recently stated that the focus of the ministry and its agencies was to build a functional oil and gas sector that would attract the much-needed investments for economic growth and prosperity.