CEM REPORT | The National Bureau of Statistics (NBS) has revealed that Citibank, Standard Chartered, and Stanbic IBTC were the highest contributor to the dollar inflows into the Nigerian economy within January to June of 2022.
According to the NBS report, a total of $3.11 billion came into the country’s economy as foreign inflows in the first half of the year (H1’22).
The report notes that $889.9 million came into the Nigerian economy through Citibank accounting for 28.6% of the total capital importation, Standard Chartered Bank Nigeria, pulled in a total of $866.44 million resulting in 27.9% of the total recorded in the period under review
While Stanbic IBTC followed with an inflow of $415.44 million, representing 13.4% of the total inflows into Nigeria.
Majority of the foreign inflow was sourced from the United Kingdom ($1.8 billion), South Africa ($239.8), Singapore ($203 million), and the USA ($162.3 million).
A possible reason why these banks ranked highest on the list of financial institutions in the country with the highest capital inflows can be traced to the fact they are subsidiaries of international banks; Citibank Nigeria is owned by Citibank Overseas Investment Corporation, a subsidiary of Citibank N.A (USA). In the same vein, Standard Chartered is a subsidiary of SC, which is a British multinational banking and financial services company headquartered in London.
It is worth noting that of the 28 banks listed, only 21 of them recorded foreign inflows in the period under review.
According to the report by the bureau, the recorded $3.11 billion is a 20.7% decline from $3.92 billion attracted in the second half of 2021.
Although when compared to the corresponding period of 2021, this is an 11.8% increase from $2.78 billion received in the first half of 2021.
Highlights of the NBS report state that:
Capital importation in the review period stood at $3.11 billion compared to $3.92 billion received in the second half of 2021.
Portfolio investments stood at $1.71 billion in the same period, representing 55.2% of the total inflows, foreign direct investment (FDI) on the other hand, accounted for 9.7% with $302.13 million in inflows.
Other investment, which includes trade credit, loans, currency deposits, and other claims accounted for 35.1% of the total inflows with $1.09 billion inflows.
Majority of the funds came into through Lagos State with $2.17 billion, followed by Abuja with $900.8 million, and Anambra State with $28.86 million.
Top 10 banks with the highest inflows
Citibank tops the list with $889.97 million
Closely followed by Standard Chartered Bank Nigeria with $866.44 million.
Stanbic IBTC Bank saw $415.44 million routed through its institution in the first half of the year, a decline from $991.7 million recorded in H2 2021.
Zenith Bank attracted $221.26 million,
Ecobank Nigeria routed $152.75 million,
Access Bank brought in $101.14 million,
First Bank of Nigeria – $90.48 million,
Union Bank of Nigeria closed the period with $88.96 million
FCMB with $72.22 million and
Rand Merchant Bank with $70.4 million.