Investments in Nigeria’s oil sector decline to N78b—NBS

The National Bureau of Statistics (NBS).has revealed that capital importation into Nigeria’s oil and gas sector has declined from the $200 million (N90 billion) of the second quarter of 2016 to $172 million (N78 billion) in third quarter of 2016.

The decline has been attributed to uncertainty in the country’s oil and gas sector occasioned by insecurity, delay in the passage of the Petroleum Industry Bill (PIB) and delay in meeting contractual obligations in the services industry.

NBS stated in the report that the oil and gas sector maintained a high level of capital importation; although it decreased by 14.4 per cent relative to the previous quarter; but still elevated relative to previous periods at $171.63 million.

It noted that the sector is characterised by isolated periods of high capital importation, adding that it is therefore unusual that the level has remained high for two consecutive quarters.

This sector, it said, accounted for the third highest amount in the third quarter of 2016.The oil and gas sector, had for the first time, during the second quarter of the year, recorded the largest amount of capital, which accounted for $200.39 million, or 19.23 per cent of the total.

NBS revealed further that in all previous quarters; the sector that imported the most capital had been banking, financing, production or telecommunications, nothing that oil and gas is characterised by occasional high levels of capital importation, interspersed with periods in which very little capital is imported. “This sector imported $20.83 million in first quarter and only $4.86 million a year previous,” it added.