Business a.m.
The Nigerian banking sector’s prowess in attracting foreign capital was on full display in the second quarter of 2024, led by CitiBank Nigeria Limited and Standard Chartered Bank Nigeria, as the industry accounted for 43.15 percent of the total capital importation recorded by the National Bureau of Statistics (NBS) during the three-month period.
The total capital imported into Nigeria rose sharply by 152.8 percent in the second quarter of 2024 compared to the same period in 2023, reaching $2,604.50 million. However, this figure represents a 22.85 percent decline from the previous quarter’s capital importation figure of $3,376.01 million recorded in Q1 2024.
The banking sector gained a dominant position in the Nigerian economy in Q2 2024, as it attracted an inflow of foreign capital totaling $1,123.95 million, representing 43.15 percent of the total capital imported during the period.
The banking sector was followed by the production/manufacturing sector, which brought in $624.71 million, accounting for 23.99 percent of the total.
The trading sector secured the third spot, attracting $569.22 million, making up 21.86 percent of the total capital imported.
The Nigerian banking sector boasted some heavy hitters during Q2 2024, with Citibank Nigeria Limited, Standard Chartered Bank Nigeria, Rand Merchant Bank, Stanbic IBTC Bank, Access Bank, Zenith Bank, Ecobank Nigeria Plc, Ecobank Nigeria Plc, and FirstBank of Nigeria topping the charts for capital importation.
According to the data provided by the NBS, Citibank Nigeria Limited dominated the foreign capital inflow into Nigeria during Q2 2024, experiencing a 31.4 percent rise to $818.46 million, up from $547.7 million in the previous quarter. Close on its heels was Standard Chartered Bank Nigeria Limited, which saw a 25.14 percent increase in its capital importation to $654.79 million from $399.4 million.
In contrast to the upward trajectory of Citibank Nigeria Limited and Standard Chartered Bank Nigeria Limited, Rand Merchant Bank Plc experienced a decline in capital importation during Q2 2024, dropping 18.8 percent from $528.7 million to $488.59 million. Similarly, Stanbic IBTC Bank also saw its capital importation decrease to $409.9 million from $1,257.4 million
The downward trend in capital importation also affected Access Bank and Zenith Bank in the second quarter of 2024, as both financial institutions recorded significant drops in their respective figures.
Access Bank saw its capital importation dip by 71.4 percent, dropping from $278.18 million in the first quarter of the year to $80.14 million in the second quarter.
Also, Zenith Bank’s capital importation experienced a 23.3 percent decline, falling from $98.7 million in Q1 to $78.1 million in the second quarter of 2024.
The overall trend of declining capital importation was also reflected in the figures recorded by Ecobank and FirstBank during the second quarter of 2024.
Ecobank saw its capital importation decrease by 21.4 percent, falling from $32.9 million in the previous quarter to $25.89 million in Q2 2024.
Similarly, FirstBank recorded a relatively modest capital importation figure of $21.3 million in the second quarter of the year.
