As capital importation from banks reached $38.18 billion in over three years, Stanbic IBTC Bank, Standard Chartered Bank Nigeria, and Citibank Nigeria Limited took the lead.
Banks imported $38.18 billion in capital between January 2019 and September 2021, a period of 33 months.
Banks imported the most capital in 2019, at $23.99 billion, according to a National Bureau of Statistics data, which decreased to $9.68 billion in 2020.
Banks, on the other hand, only imported $4.51 billion in the first nine months of 2021, showing their poorest performance in the 33-month period under study.
The data on capital importation was collected from the Central Bank of Nigeria, according to the NBS, and includes both imported physical capital, such as equipment, and imported financial capital.
Foreign direct investment, foreign portfolio investment, and other investments are the three primary investment categories in capital importation.
The FDI covers equity and other capital, whereas the FPI includes stock, bonds, and money market instruments; ‘other investments’ include trade credits, loans, currency deposits, and other claims, according to the report.
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.
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).
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.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
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