Oil sector attracts $460,000 in three months – NBS

nigeria’s oil and gas sector recorded a 283.3 per cent increase in foreign capital inflows in the first quarter of 2026, but the industry continued to attract only a negligible share of total investments entering the country, official data have shown.

Figures obtained from the latest Capital Importation Report released by the National Bureau of Statistics and analysed by our correspondent on Friday showed that the oil and gas sector attracted just $0.46m in foreign capital during the review period, compared to $0.12m recorded in the corresponding period of 2025.

Although the year-on-year growth represents a significant percentage increase, the actual value of investments flowing into the industry remained extremely low when compared to the overall capital imported into the Nigerian economy.

The NBS report indicated that total capital importation into Nigeria rose to $10.37bn in the first quarter of 2026 from $5.64bn recorded in the same period of 2025, representing an increase of 83.83 per cent.

The oil and gas sector’s inflow of $460,000 accounted for virtually zero per cent of the total capital imported during the quarter, highlighting persistent investor caution towards an industry that remains the backbone of Nigeria’s economy and the country’s largest source of export earnings.

Further analysis of the data showed that the sector’s performance improved from the $120,000 recorded in the first quarter of 2025 but remained significantly below the levels required to support large-scale upstream, midstream and downstream investments.

The industry attracted $9.50m in the second quarter of 2025 before inflows declined to $4.60m in the third quarter and $3.76m in the fourth quarter. Cumulatively, the sector received $17.98m throughout 2025.

The latest figures suggest that despite ongoing reforms aimed at reviving investor confidence, foreign capital inflows into the oil and gas industry remain weak relative to the size and strategic importance of the sector.

In contrast, the financial services industry emerged as the biggest beneficiary of foreign investments during the period.

According to the report, the banking sector attracted $7.55bn, representing 72.79 per cent of total capital imported into Nigeria in the first quarter. This was followed by the financing sector, which received $2.43bn, or 23.42 per cent of total inflows.

The production and manufacturing sector attracted $152.27m, accounting for 1.47 per cent of total capital imported into the country.

The report also revealed that portfolio investments continued to dominate foreign capital inflows, accounting for $9.86bn, or 95.09 per cent of total investments recorded during the quarter.

Other investments contributed $374.48m, representing 3.61 per cent, while foreign direct investment, often regarded as the most stable form of capital, stood at just $135.08m, accounting for 1.30 per cent of total inflows.

The report read, “In Q1 2026, total capital importation into Nigeria stood at US$10,371.90 million, higher than US$5,642.07 million recorded in Q1 2025, indicating an increase of 83.83 per cent. In comparison to the preceding quarter, capital importation increased by 60.97 per cent from US$6,443.48 million in Q4 2025.

“Portfolio Investment ranked top with US$9,862.34 million, accounting for 95.09 per cent, followed by Other Investment with US$374.48 million, accounting for 3.61 per cent. Foreign Direct Investment recorded the least with US$135.08 million, representing 1.30 per cent of total capital importation in Q1 2026.”

A breakdown by source country showed that the United Kingdom retained its position as Nigeria’s largest capital importation partner, accounting for $5.08bn, or 49.01 per cent of total inflows.

The United States followed with $3.18bn, representing 30.69 per cent, while South Africa contributed $983.83m, or 9.49 per cent of the total capital imported during the quarter.

The report further showed that Standard Chartered Bank Nigeria Limited handled the largest share of capital inflows into the country, receiving $4.41bn, or 42.56 per cent of total imported capital.

Stanbic IBTC Bank Plc followed with $2.78bn, accounting for 26.79 per cent, while Rand Merchant Bank received $930.82m, representing 8.97 per cent of the total.

The latest capital importation data come despite repeated assurances by government officials that Nigeria’s oil and gas sector is witnessing a major investment rebound driven by reforms under the Petroleum Industry Act and efforts to attract fresh investments into the petroleum sector through the award of new oil and gas assets.

Speaking at the 2026 Nigeria International Energy Summit in Abuja, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed that Nigeria secured 28 new Field Development Plans valued at $18.2bn in 2025, with the projects expected to unlock about 1.4 billion barrels of crude oil reserves. The minister said the approvals signalled renewed investor confidence in Nigeria’s upstream sector after years of declining investments and production.

Lokpobiri also noted that four of the seven major Final Investment Decisions announced across Africa between 2024 and 2025 were recorded in Nigeria, which he attributed to policy clarity, improved governance and reforms aimed at making the country’s petroleum industry more competitive.

According to him, the approvals represented evidence that Nigeria had once again become a preferred destination for oil and gas investments on the continent.

The minister further argued that the implementation of the Petroleum Industry Act, fiscal incentives for upstream operators and the resolution of long-delayed International Oil Company divestments had helped restore investor confidence and attract fresh capital into the sector.

Similarly, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, recently said reforms championed by the Nigerian Upstream Petroleum Regulatory Commission had unlocked more than $24bn in investments across the upstream oil and gas industry, with an additional $10bn investment pipeline under consideration.

Ojulari stated that the investments were the result of targeted interventions to resolve legacy disputes, unlock stalled Final Investment Decisions and improve the operating environment for investors.

He expressed confidence that the inflows would support Nigeria’s ambition of raising crude oil production to three million barrels per day over the medium term.

However, the National Bureau of Statistics data paint a different picture regarding actual foreign capital imported into the sector during the first quarter of 2026.

Despite the government’s announcement of multi-billion-dollar commitments and project approvals, the oil and gas industry attracted only $460,000 in capital importation during the period, accounting for virtually zero per cent of the $10.37bn that entered the Nigerian economy.

This suggests that while investment commitments and project approvals may be rising, many of the anticipated inflows have yet to fully translate into recorded foreign capital entering the sector.

The sharp contrast between the sector’s strategic importance and its share of foreign capital inflows is likely to intensify concerns about the pace of investment recovery in an industry that generates the bulk of Nigeria’s foreign exchange earnings and government revenues.