Nigeria’s oil and gas sector, which has been a significant contributor to the country’s economy, has seen a notable decline in foreign investment in the first half of the year. According to a recent report, the sector attracted only $5 million in foreign investment during this period.
This figure is a stark contrast to previous years. For instance, in 2017, the sector received $331.36 million in foreign capital investment. In 2018, it was $133.51 million, $216.23 million in 2019, and $53.51 million in 2020. The drastic drop in 2024 highlights the challenges the sector is facing in attracting foreign investors.
Experts have attributed this decline to various factors, including the global economic landscape and the need for more robust regulatory frameworks to attract and retain investors. The government’s efforts to revitalize the sector and make it more attractive to foreign investors are ongoing, but the current numbers indicate a significant gap that needs to be bridged.
The report also underscores the importance of stable and favorable investment conditions to boost foreign investment in the petroleum sector. As Nigeria continues to rely heavily on its oil and gas resources, improving the investment climate is crucial for the sector’s growth and the overall economy.
