Stanbic, Ecobank, Standard Chartered attract most capital to Nigeria in Q3

Mid-tier lender Ecobank Nigeria and the local unit of Standard Chartered Bank have joined Stanbic IBTC Bank to become foreign investors’ favourites for investment deals.

This followed major declines in the capital flow through Citibank Nigeria Limited and Rand Merchant Bank in the third quarter of this year, paving ways for both Standard Chartered Bank and Ecobank Nigeria to join the toasts of investors.

While the total value of capital importation into the Nigerian economy fell by 7.78 percent to $5.36 billion in the third quarter of 2019 from the previous quarter, Standard Chartered Bank and Ecobank Nigeria attracted 53.22 percent and 55.41 percent more capital, according to a recent capital importation data by the National Bureau of Statistics (NBS).

Specifically, out of 26 banks foreign investors used to deploy foreign capital into the country, the most investment came through Stanbic IBTC Bank. The bank attracted $1.63 billion worth of investment in the third quarter of this year, lower than $1.76 billion it had in the previous quarter.

Ecobank trailed with $754.38 million worth of foreign investment, while Standard Chartered Bank, a wholly-owned subsidiary of UK-based Standard Chartered Bank occupied the third position by attracting $502.47 million inflows. Access Bank got $477.55 million; Rand Merchant Bank, $430.15 million; Citibank Nigeria Limited; $350.95 million; while First Bank of Nigeria had $307.94 million.

The banks with the least amount of investment were Providus Bank with $99,975 worth of investment; Suntrust Bank Nigeria, $6.72 million; Sterling Bank, $7.52 million; Wema Bank, $7.52 million; FSDH Merchant Bank, $11.13 million; Nova Merchant Bank, $15.50 million; Fidelity Bank, $47.19 million; and First City Monument Bank with $39 million.

Furthermore, the capital importation data reveal that the total foreign investment in Nigeria in the third quarter of 2019 was channelled to only eight states of the federation including the Federal Capital Territory, Abuja.

The data show that Lagos state was the most preferred destination for foreign investors, accounting for about 93 percent of the total offshore investment recorded in the country with more than $4.97 billion worth of investment.

Foreign investment inflow into the FCT, Abuja, slumped to $381.19 million, representing some three-quarters decline from the previous quarter. Ogun had $7 million; Oyo, $1.71 million; Edo, $830,000; Kaduna, $250,000; Kano, $160,000; while Rivers had $30,000.