Finance

Stanbic, Standard Chartered, Citi lead as banks record $38.2bn foreign inflows.

Stanbic IBTC Bank, Standard Chartered Bank Nigeria, and Citibank Nigeria Limited lead as capital importation from banks hit $38.18bn in almost three years.

Between January 2019 and September 2021 (33 months), the total capital importation by banks amounted to $38.18bn.

According to a National Bureau of Statistics report, banks imported the most capital in 2019 at $23.99bn, which reduced to $9.68bn in 2020. However, in the first nine months of 2021, banks recorded only $4.51bn capital importation, indicating their worst run in the 33-month period under review.

The NBS said the capital importation data were obtained from the Central Bank of Nigeria and they include imported physical capital, such as equipment, and financial capital importation.

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Capital importation comprises three main investment categories, namely foreign direct investment, foreign portfolio investment, and other investments.

It added that the FDI includes equity and other capital, while the FPI includes equity, bonds, and money market instruments; ‘other investments’ include trade credits, loans, currency deposits, and other claims.

Within the period under review, eight out of the 28 banks listed by the NBS accounted for 90.95 per cent ($34.73bn) of the total capital importation recorded by the banks.

The eight banks are: United Bank For Africa Plc ($1.09bn), Access Bank Plc. ($2.17bn), First Bank of Nigeria Limited ($2.2bn), Ecobank Nigeria ($2.26bn), Rand Merchant Bank ($3.85bn, ) Citibank Nigeria Limited ($4.45bn), Standard Chartered Bank Nigeria Limited ($6.61bn), and Stanbic IBTC Bank Plc ($12.10bn).

Diamond Bank Plc, Jaiz Bank Plc, and Unity Bank Plc, recorded zero capital importation in the period under review.

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Other financial institutions captured in the review period include Coronation Merchant Bank ($11m), FBN Merchant Bank ($290.96bn), FSDH Merchant Bank Limited ($76.93m), Fidelity Bank Plc ($170.25m), First City Monument Bank Plc ($440.64m), Globus Bank ($1m), Guaranty Trust Bank Plc ($765.5m), Heritage Banking Company Limited ($50,000), and Keystone Bank Limited ($0.87m).

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Others on the list are Nova Merchant Bank Limited ($68.03m), Providus Bank ($3.13m), Polaris Bank Limited ($0.53m), Sterling Bank ($75.59m), SunTrust Bank Nigeria ($7.6m), Union Bank Of Nigeria Plc ($636.66m), Wema Bank Plc ($57.62m), and Zenith Bank Plc ($850.62m)

The Managing Director, Cowry Asset Management, Johnson Chukwu, had said Nigeria’s dwindling capital importation especially in 2021 was likely as a result of a decreasing FPI.

He said foreign portfolio investors might have been discouraged from investing in the Nigerian market as a result of the perceived illiquidity in the forex market.

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