32 billion Naira Foreign Investment Loss by the Oil Sector.

According to report for second quarter, Q2, Nigerian Capital Importation Report, which was released by the National Bureau of Statistics, NBS, the oil and gas sector accounted for 0.07 per cent of total capital imported into Nigeria with $3.83 million, about N612.8 million.

 Foreign investments into the oil and gas sector dropped by $197.31 million, about N31.6 billion in three months, between April and June 2014 due to the non-passage of the Petroleum Industry Bill (PIB).

The NBS said that total capital that was imported into the Nigerian economy in Q2 2014 was $5.804 billion, increasing by $1.899 billion or 48.64 per cent from $3.905 billion recorded in the opening quarter of this year.

“Relative to the $5.618 billion recorded in the corresponding quarter of 2013, capital importation demonstrated positive year on year growth of $186.23 million or 3.32 per cent,” said NBS.

According to report given by NBS, capital importation can be divided into three main investment types: portfolio investment; Foreign Direct Investment, FDI; and other investments, each comprising of various sub-categories.

More analysis of the report showed that in Q2 2013, the oil and gas sector recorded foreign investments inflow of $70.827 million, which rose to $201.14 million in Q1 2014.

However, in the Q2 2014, inflows into the oil sector recorded a quick decline, dropping by 98.1 per cent to $3.83 million.

 According to NBS, “Oil and Gas, representing just 0.07 per cent of capital imported in the second quarter of 2014, showed some of the greatest declines in value. From the $70.83 million recorded a year earlier, it saw a $67.00 million or 94.59 per cent decline in value, with its share of total capital imported declining 1.19 per cent points from the 2.26 per cent it represented in quarter two of 2013’’.

In spite its slow growth all through 2013 and into the opening quarter of 2014, the second quarter saw another sharp drop in inflows, by $197.31 million or 98.10 per cent from the $201.14 million recorded in 2014’s first quarter.

 From report, majority of the funds came from the United Kingdom with $3.973 billion, which represent 68.46 per cent of the total inflow in the period under review.

The United States followed, accounting for 17.28 per cent of the total inflow in Q2 with $1.002 billion; Belgium followed with $373.69 million, representing 6.44 per cent.

Others are: France - $89.75 million; Mauritius - $79.34 million; Switzerland - $60.57 million; South Africa - $56.84 million; and Lebanon - $27.81 million.