Nigeria earns $6.3b FDI from oil, gas manufacturing

Written by Maritime First

…Nigeria’s 2.069mbpd oil production still below budget estimates***

Over $6.3 billion has been recorded as Foreign Direct Investment (FDI) in the oil and gas sector, as well as in manufacturing this year, the  Executive Secretary, Nigeria Investment Promotion Commission (NIPC),  Yewande Sadiku, has said.

Speaking with reporters in Abuja, yesterday, she said the figure exceeded what was received as FDI investment in 2016. She said the Commission now has a seamless collaboration with the states to enable it monitor investments inflow into the country.

She said: “Energy sector, oil and gas as well as the manufacturing sector top the list of announced investments inflows monitored  from 26 states of the federation and the Federal Capital Territory (FCT) in the first quarter of 2018.

“In the year 2016,the total capital inflow was $5.4 billion; in 2017,there was an increase in the volume of flows to $12.4 billion.The bulk of it is potfolio investment which is  still yet to mature.

The Executive Secretary however said investments announcements are not the same as investments, stating that  investments reflected in  112 projects tracked in 26 states of the federation and the FCT.

“This figure gives us a sense, but I tell you that there are investments that may not be disclosed, since investors are not really under obligation to disclose figures,” she said.

According to her, the highest proportion of such announcements came from Nigerians who indicated interest in investing in the country.

“We are interested in seeing more Nigerians invest in the country and we have a Domestic Direct Investment model now in the Commission; we working with the National Bureau of Statistics (NBS) to track investments inflow into the country.

“The current efforts of the NIPC in working more closely with the states to increase the level of investment inflow into the country, and to ensure seamless collaboration and proper tracking,” she said.

She noted however, that the states has a certain level of autonomy, and could go for investments on their own, stressing that what is important is that there is active collaboration, and proper harmonisation.

“We currently have a WhatsApp group with all the state investments and promotion agency in Nigeria,various commissioners of investments,and special assistant to the governor on investments matters, to share information and also exchange ideas,aimed at better collaborations,” she explained.

In the meantime, Nigeria’s crude oil production including condensate reached 2.069 million barrels per day (mbpd) in April 2018, according to data from the Federal Ministry of Petroleum Resources.

Though there is a slight increase from the 2.022mbpd the country recorded in March, this means Nigeria is still struggling to step up production to meet the 2.3mbpd benchmark proposed in the 2018 budget.

The country therefore has a short fall of 278,000 bpd from the 2.3mbpd budget benchmark for 2018.

The Ministry, which made the disclosure in its monthly oil and gas report released recently, put the country’s gas production at 7.98 billion standard cubic feet (bscf) during the month under review.

It also revealed that Nigeria imported 51.56 million litres premium motor spirit (PMS); 1.55 million litres automotive gas oil (AGO); 1.58 million litres dual purpose kerosene (DPK); 1.46 million litres aviation turbine kerosene (ATK); and 1.02 million litres low pour fuel oil (LPFO).

Speaking on the Federal Government’s plans to boost crude oil production, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru said that the corporation has been able to bring down the cost of producing a barrel of crude oil to $20, even as it now targets producing the black gold at $15 per barrel.

The Nation with additional report from Guardian NG

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Maritime First