Stanbic IBTC tops list of preferred banks for capital importation in 2024

This is according to capital importation data from the central bank of Nigeria which shows the bank leading the pack with about $2 billion of capital importation through banks.

The amount represents about 28% of total capital importation passing through commercial banks for the year in view.

Capital importation which includes foreign direct investments and foreign portfolio investments is the total amount of foreign capital flowing into the country at any given time. All of the capital imported flow through commercial banks operating in Nigeria.

Nigeria has attracted a total of $7.2 billion in the first 9 months of 2024 in total capital importation, compared to $2.8 billion the same period in 2023.

Nigeria has recorded an increase in capital importation in 2024 as central bank monetary policies increasing interest rates improved the perception of investment securities in the country.

While about 22 banks received foreign capital on behalf of their clients in 2024 only 4 banks received 85% of total capital imported.

The data suggest most foreign investors prefer to import capital via banks that have strong foreign ownerships or affiliations in countries where foreign investments come from.

Nigerian banks have recently increased their foray into other African countries with banks like Access Bank leading the pack via acquisitions and aggressive pan-African expansions.

The dominance of banks like Stanbic IBTC, Citibank, and Standard Chartered in capital importation highlights their critical role in facilitating foreign investments into Nigeria.

For local banks like the FUGAZ, the lower share of capital importation indicates room for growth in attracting foreign capital.

By improving international appeal and aligning with global investment standards, they could better compete with their foreign-affiliated peers and capitalize on Nigeria’s growing investment opportunities.