Banks attracted $4.74bn foreign investment into the country in the first half of 2019

According to the data obtained from the National Bureau of Statistics (NBS), 22 Nigerian banks attracted 33.16 per cent of the total amount of foreign investment recorded in the first half of the year, which stood at $14.31bn.

In the first quarter of the year, the total value of capital importation into Nigeria stood at $8.49bn. This is an increase of 216.03 per cent over the value recorded in the fourth quarter of 2018 and 34.61 per cent increase over the value recorded in the first quarter of 2018.

By sector, capital importation by banking dominated the Q1 2019 performance, reaching $2.85bn of the foreign investment in first quarter of the year.

By bank, Stanbic IBTC Bank Plc emerged at the top of capital investment in Nigeria in Q1 2019 with $3.61bn. This accounted for 42.50 per cent of the total capital inflow in Q1 2019.

In the second quarter of the year, the total value of capital importation into Nigeria stood at $5.82bn. This showed a 31.41 per cent decrease compared to the value recorded in Q1 2019 and 5.56 per cent increase compared to the value recorded in Q2 2018.

Again, capital importation by banking topped Q2 2019, reaching $1.89bn of the total foreign investment in Q2 2019.

By bank, Stanbic IBTC again emerged at the top of capital investment in Nigeria in Q2 2019 with $1.77bn. This accounted for 30.34 per cent of the total capital inflow in Q2 2019.

In total, Stanbic IBTC attracted $5.38bn, followed by Rand Merchant Bank with a total foreign investment of $1.98bn, Citi Bank with $1.79bn investment and Standard Chartered Bank with $1.4bn.

Access Bank Plc attracted $810.22m worth of foreign investment while Union Bank got $280.94m.

United Bank for Africa Plc, Zenith Bank Plc, Ecobank, Guaranty Trust Bank Plc and Wema Bank Plc attracted $82.77m, $201.71m, $566.31m, $215.36m and $1m, respectively.

First City Monument Bank Plc and FBNQuest Merchant Bank Limited attracted $7.98m and $23.02m. First Bank of Nigeria Limited and FSDH Merchant Bank respectively attracted foreign investment worth $229.42m and $11m.

The banks with the least amount of investment were Sterling Bank Plc with Bank $918,017; Fidelity Bank Plc, $846,597; Providus Bank, $657,137; Coronation Merchant Bank, $414.36 and Suntrust Bank with $411,243.

Polaris Bank and Keystone Bank had $16.2 and $0.11 worth of investment, respectively.

Vice-President Yemi Osinbajo had said there was an increased need to attract more investments into the country.

Osinbajo, while speaking during the 2019 FMDQ Capital Market Conference in Lagos, said foreign investors had nothing to worry about as there were no laws limiting foreign participation and investment in any sector of the economy.

According to him, though there are no limits to investing, the Federal Government has simple and clear procedures for capital repatriation.

He said there was also a need to make investors see Nigeria as a compelling destination of capital because capital was central to economic growth and development.

The Vice President said countries currently enjoying economic prosperity had been observed to have experienced transformation in their human and physical capital, which was facilitated by attracting, accumulating and effectively deploying financial capital.

Osinbajo stated that as a country, more capital was required to grow, develop and attain full potential.

He said, “We need to mobilise domestic savings and capital as well as attract the necessary foreign capital to finance our needs in the areas of infrastructure, agriculture, mining, industry, housing, the Small and Medium Enterprises, information and communication technology, transportation and other services.

“Taking infrastructure as an example, an African Development Bank report on Nigeria’s Infrastructure Plan in 2013 estimated that Nigeria would need to invest about $350bn in 10 years in order to meet up with its peers while other sources have estimated a slightly higher figure