Five Nigerian banks ignored by foreign investors in 2020

Out of 25 Nigerian banks that competed for capital importation, five banks recorded zero investment from foreign investors.

Nigeria’s financial institutions recorded $9.68 billion in 2020. This amount is significantly lower than the $23.98 billion which the banking industry obtained from foreign investors during the corresponding period of 2019.

According to data released by the Nigerian Bureau of Statistics (NBS), foreign-owned banks secured the highest capital inflow from external investors, accounting for $7.04 billion out of the $9.68 billion reported for 2020.

Read also: Foreign-owned banks dominate Nigerian banks, attract highest capital inflow

In 2019, foreign investors had also shown more interest in the foreign-owned banks, investing $16.66 billion of the $23.98 billion foreign inflow in the banks during the same calendar year, NBS data analysed by Ripples Nigeria showed.

Further observations showed that not all the banks were able to secure investment from foreign investors, as five banks were left with an empty wallet. The banks are namely; Unity Bank, Keystone Bank, Heritage Bank, Coronation Merchant Bank and Jaiz Bank.

The banks failed to attract capital from foreign investors in the first quarter of 2020 to the last quarter of last year – that means Unity Bank, Keystone Bank, Heritage Bank, Coronation Merchant Bank, Jaiz Bank didn’t get capital infusion throughout the quarters of 2020.

In 2019, Coronation Merchant Bank, Heritage Bank, Unity and Jaiz Bank also recorded zero capital from foreign investors, while Keystone Bank recorded $110,000 during the same period.

By Fakoyejo Olalekan….

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