Oil Sector Attracted Zero Overseas Funding in Q2, 2021 – NBS
The oil and fuel sector within the nation failed to draw any overseas funding for the primary time in Q2 2021, amid the worldwide push for cleaner vitality, in response to the Nationwide Bureau of Statistics (NBS).
The NBS in its ‘Nigeria Capital Importation Q2’ report said that the Federal Authorities did not persuade IOCs to put money into the oil and fuel sector between January and June.
The report confirmed that the nation had no overseas capital importation into the sector within the interval beneath evaluation.
The report comes on the heels of varied divestment efforts by Worldwide Oil Firms into cleaner energies and to neighbouring nations on account of dedication to the United Nations agenda that seeks to chop emissions from fossil fuels to zero by 2050.
Former President Mohammadu Buhari on behalf of Nigeria pledged to achieve net-zero by 2060.
The web-zero race has since seen IOCs, together with most indigenous oil firms, rebrand from full-fledged oil and fuel to vitality companies.
On account of low investments, Nigeria’s crude oil manufacturing has dropped drastically, particularly since COVID 19, reaching about 900, 000 barrels per day round September final yr earlier than climbing to about 1.3mb/d in September, in response to statistics from the Group for the Petroleum Exporting Nations.
Reacting to the drop in funding within the sector, the President of the Nigerian Affiliation of Petroleum Explorationists, Elliot Ibie, advised Economic Confidential that the dearth of investments within the sector by IOCs and NOCs was not as a result of vitality transition and divestment.
“It began after COVID 19, coupled with safety challenges, pipeline vandalism and oil theft and slowness in passage of the Petroleum Business Act,” he stated.
NBS stated Nigeria recorded $1.03bn capital importation in Q2 2023, 32.9 per cent decrease than the $1.54bn recorded within the corresponding interval of 2022.
It was barely decrease than the $1.13bn recorded within the earlier quarter.
NBS indicated that a lot of the overseas inflows in Q2 got here into the nation as loans, accounting for 74.9 per cent of the full capital import.
Overseas direct funding into the nation which NBS put at $86.03m accounted for 8.4 per cent, whereas overseas portfolio funding with $106.85m accounted for 10.4 per cent of the nation’s overseas inflows.
The oil and fuel sector has been the federal government’s main income, in response to over 90 per cent of the nation’s overseas trade earnings.
Nonetheless, the manufacturing sector attracted probably the most overseas inflows in Q2 with $605.04m, adopted by banking with $194.58m, and the inventory market with $68.63m.
Becoming a member of the listing of IOCs which have bought their oil and fuel belongings in Nigeria, just lately, Italian firm Eni additionally agreed to promote its subsidiary Nigerian Agip Oil Firm to Oando.
In line with a British analysis and consulting agency, Wooden Mackenzie, divestment by worldwide oil companies in Nigeria, they amounted to £871m since 2020.
In a current assembly with Shell Petroleum Growth Firm, President Bola Tinubu had stated attracting investments was “a promise I made personally to Nigerians. No matter it takes, I’ll fulfil that promise to Nigerians”.