NCDMB Says Nigeria Lost $380 Million Investments, 2 Million Jobs as Investors Fled Nigeria

NCDMB Says Nigeria Lost $380 Million Investments, 2 Million Jobs as Investors Fled Nigeria

  • Prior to the enactment of the Nigerian Oil and Gas Industry Content Development Act, the country recorded $380bn loss
  • This also resulted in over two million job losses, as most jobs were also executed by foreigners
  • The NCDMB noted that only a negligible part of the value of the oil and gas business was kept within the nation

The Nigerian Content Development and Monitoring Board (NCDMB) claims that before the 2010 enactment of the Nigerian Oil and Gas Industry Content Development Act, the nation lost over $380 billion.

The NCDMB executive secretary Simbi Wabote said this at a workshop on sensitization for the Rivers state judiciary while speaking on the title "Philosophy and Imperative of the Nigerian Oil and Gas Industry Content Development Act."

Nigeria, Investment loss
NCDMB says Naira Depreciation, Others led to Loss of $380 million Investment in Nigeria Credit: Tinubu Source: Facebook
Source: Facebook

Capital flight is the widespread evacuation of financial resources and money from a country as a result of circumstances like political or economic unrest, currency depreciation, or the implementation of capital controls.

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Recall that legit.ng reported that Nigeria lost 81 percent of foreign investment in three years as Capital imports into Nigeria dipped by 81.46 per cent, about $6.91 billion from $8.49 billion in the first quarter of 2019 to $1.57 billion in the same period of 2022.

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Local content is about domestication

Wabote, who spoke virtually according to The Cable report, clarified that local content was about domiciliation and domestication for local value addition rather than nationalisation of international companies.

He expressed dissatisfaction that only a small, insignificant proportion of the oil and gas industry value was retained in the country despite Nigeria’s enviable hydrocarbon and human resources.

He said:

Prior to the enactment of the Nigerian Oil and Gas Industry Content Development Act of 2010, almost all value-adding activities were done overseas, and this resulted in significant capital flight, which was estimated to be at about $380 billion over a 50-year period.

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This resulted in over two million job losses, as most jobs were also executed by foreigners. Furthermore, less than 5 percent of Nigeria’s yearly oil and gas industry spending was retained in the country.

Wabote claims that local content does not involve nationalisation, domiciliation, or domestication for the purpose of adding value locally and that it needs foreigners and foreign direct investments to succeed. To implement it, he said local characteristics are needed.

He pointed out that those working in the oil and gas sector in Nigeria are urged to produce, process, refine, manufacture, add value, maintain value, pay taxes locally, and establish jobs locally.

Foreign investors run away from 28 states as Lagos leads with highest investment in 3 months

Legit.ng earlier reported that According to new Foreign Direct Investment data released by the National Bureau of Statistics, 28 states could not attract Foreign Direct Investment in the quarter of 2023.

Of the 36 states in Nigeria and FCT, only Lagos, Abuja, Adamawa, Akwa Ibom, Ekiti, Ogun, Ondo, and Niger states saw capital inflows during the period under review.

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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