ABUJA, Nigeria (VOICE OF NAIJA)- Nigeria’s oil and gas sector recorded a 283.3 per cent increase in foreign capital inflows in the first quarter of 2026, but continued to attract only a marginal share of total investments entering the country, according to official figures.
Data from the latest Capital Importation Report released by the National Bureau of Statistics showed that the oil and gas sector received $0.46m in foreign capital during the review period, up from $0.12m recorded in the corresponding quarter of 2025.
Despite the sharp year-on-year increase, the actual value of investments flowing into the industry remained insignificant compared to the total capital imported into the Nigerian economy.
The report showed that total capital importation into Nigeria rose to $10.37bn in the first quarter of 2026 from $5.64bn in the same period of 2025, representing an 83.83 per cent increase.
The oil and gas sector’s inflow of $460,000 accounted for virtually zero per cent of total capital imported during the quarter, underscoring persistent investor caution toward an industry that remains the backbone of Nigeria’s economy and its largest source of export earnings.
Further analysis indicated that while the sector improved from the $120,000 recorded in the first quarter of 2025, inflows remained well below levels needed to support large-scale upstream, midstream and downstream investments.
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The industry attracted $9.50m in the second quarter of 2025 before inflows fell to $4.60m in the third quarter and $3.76m in the fourth quarter. In total, the sector received $17.98m throughout 2025.
The latest figures suggest that despite ongoing reforms aimed at restoring investor confidence, foreign capital inflows into the oil and gas industry remain weak relative to its size and strategic importance.
By contrast, the financial services sector emerged as the largest recipient of foreign investments during the period.
According to the report, the banking sector attracted $7.55bn, accounting for 72.79 per cent of total capital imported into Nigeria in the first quarter. The financing sector followed with $2.43bn, representing 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 showed that portfolio investments continued to dominate foreign capital inflows, contributing $9.86bn or 95.09 per cent of total investments recorded during the quarter.
Other investments accounted for $374.48m, representing 3.61 per cent, while foreign direct investment, often regarded as the most stable form of capital, stood at $135.08m, accounting for 1.30 per cent of total inflows.
The report stated: “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 remained 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 total imported capital 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 figures come despite repeated assurances from government officials that Nigeria’s oil and gas sector is experiencing a major investment rebound driven by reforms under the Petroleum Industry Act and efforts to attract fresh investments through the award of new oil and gas assets.
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Speaking at the Nigeria International Energy Summit 2026 in Abuja, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said 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.
He said the approvals reflected 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, attributing the development to policy clarity, improved governance and reforms aimed at making the country’s petroleum industry more competitive.
According to him, the approvals demonstrated 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 driven 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 said the investments resulted from targeted interventions aimed at resolving legacy disputes, unlocking stalled Final Investment Decisions and improving the operating environment for investors.
He expressed confidence that the inflows would support Nigeria’s goal of increasing crude oil production to three million barrels per day over the medium term.
However, data from the National Bureau of Statistics present a different picture of actual foreign capital imported into the sector during the first quarter of 2026.
Despite announcements 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 increasing, many of the expected inflows have yet to translate into recorded foreign capital entering the sector.
The stark contrast between the sector’s strategic importance and its share of foreign capital inflows is likely to deepen concerns about the pace of investment recovery in an industry that generates the bulk of Nigeria’s foreign exchange earnings and government revenues.