Nigeria’s oil and gas industry recorded a remarkable increase in foreign capital inflows during the first quarter of 2026, but the sector still received only a tiny fraction of the total investments entering the country.
According to the latest Capital Importation Report released by the National Bureau of Statistics (NBS), foreign capital inflows into the oil and gas sector rose by 283.3 percent year-on-year. The industry attracted $460,000 between January and March 2026, compared to just $120,000 recorded during the same period in 2025.
While the percentage increase appears impressive, the actual amount invested remains very small when compared to the total foreign capital imported into Nigeria during the quarter.
The report showed that overall capital importation into Nigeria surged to $10.37 billion in the first quarter of 2026, representing an increase of 83.83 percent from the $5.64 billion recorded in the corresponding period of 2025. As a result, the oil and gas sector’s share of total inflows was almost negligible despite being one of the country’s most important industries.
Nigeria’s oil and gas sector remains the backbone of the economy, contributing significantly to export earnings and government revenue. However, the latest figures suggest that foreign investors remain cautious about committing substantial funds to the industry.
Data from previous quarters reveal that the sector attracted $9.50 million in the second quarter of 2025 before inflows declined to $4.60 million in the third quarter and $3.76 million in the fourth quarter. In total, the industry received $17.98 million throughout 2025, a figure that remains modest considering the scale of investment required for exploration, production, refining, and infrastructure development.
In contrast, the financial services sector emerged as the biggest beneficiary of foreign investments in the first quarter of 2026. The banking industry attracted $7.55 billion, accounting for 72.79 percent of total capital inflows. The financing sector followed with $2.43 billion, representing 23.42 percent of total investments.
Meanwhile, the production and manufacturing sector received $152.27 million, accounting for 1.47 percent of the total capital imported into the country.
The report further showed that portfolio investments continued to dominate foreign capital inflows into Nigeria. Portfolio investments accounted for $9.86 billion, representing 95.09 percent of total capital imported. Other investments contributed $374.48 million, while Foreign Direct Investment (FDI), often viewed as the most stable form of investment, stood at only $135.08 million or 1.30 percent of total inflows.
A breakdown by source countries revealed that the United Kingdom remained Nigeria’s largest investment partner, contributing $5.08 billion or 49.01 percent of total capital inflows. The United States followed with $3.18 billion, while South Africa contributed $983.83 million.
Despite these positive overall figures, the oil and gas industry’s performance contrasts sharply with government claims of renewed investor confidence. Government officials have repeatedly highlighted reforms under the Petroleum Industry Act and new investment commitments aimed at revitalising the sector.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, recently disclosed that Nigeria secured 28 new Field Development Plans worth $18.2 billion in 2025. The projects are expected to unlock approximately 1.4 billion barrels of crude oil reserves.
Similarly, NNPC Limited’s Group Chief Executive Officer, Bashir Bayo Ojulari, stated that reforms introduced by regulators have helped unlock more than $24 billion in upstream oil and gas investments, with an additional $10 billion pipeline currently under consideration.
However, the NBS figures indicate that many of these investment commitments and project approvals have not yet translated into actual foreign capital entering the sector. The gap between announced investments and recorded inflows is likely to raise concerns about the pace of recovery in an industry that remains critical to Nigeria’s economic growth and foreign exchange earnings.
