Finance: Three foreign banks operating in Nigeria account for 70.7% of foreign capital importation in Q2 2017
The trio of Stanbic IBTC, Citibank Nigeria and Standard Chartered Bank accounted for 70.7 per cent or $1,267.8 billion of the total capital importation into Nigeria in the second quarter of 2017.
According to the National Bureau of Statistics (NBS), a total of $1.792 billion was generated by 25 banks in the country. This figure represents a 95.02% growth on $908.2 million generated in Q1 2017.Among these 25 banks, Stanbic IBTC accounted for 32.91 per cent ($589.84 million) of the total share during the period. Followed by Citibank Nigeria (19.12% – $342.74 million) and Standard Chartered Bank (18.7% – $335.25 million). These banks are Nigerian business units for their foreign parent banks.“The total value of capital imported into Nigeria in the second quarter of 2017 was estimated to be $1,792.3 million. This figure was $884.1 million more than the figure recorded in q1 2017, a growth of 95.02percent. Year on year, this was an increase of 43.6percent from the $1,042.2 million recorded in q2 of 2016.”“The main driver of the quarterly growth in capital importation in the second quarter was Portfolio Investments, which increased by 145.7 percent, followed by other Investments, which grew by 95.02 percent. And then Foreign Direct Investment (FDI), which increased by 29.8 percent over the previous quarter,” the report stated.
Portfolio investments within the quarter was $770. 5 million which represents 43 per cent of the total and 145. 7 per cent growth from its figure in Q1 2017. This growth is due to the restored confidence of foreign investors in the Nigerian Capital market and stability in the FX market.Foreign direct investments and other investments were $274.4 million and $770.5 million respectively.The United Kingdom accounted for the bulk of capital imported into the country, followed by United States of America and Belgium.The NBS report also showed that some of these funds were invested in some activities in the real sectors of the economy. Oil and gas had $190.39 million, telecom – $174 million, servicing – $145 million, production $141 million as well as banking – $89.90 million.However, the majority of the fund ($932.58 million) were traded for shares on the Nigerian Stock Exchange (NSE).