UBS and HSBC Depart Nigeria
Quote from Ndubuisi Ekekwe on November 3, 2018, 12:01 PMTwo foreign banks, UBS and HSBC, depart Nigeria. Simply, they cannot make money in the country as FDI falls and there is nothing really much to do. They would be back after the uncertainty on election clears. Nigeria needs to get to that level where elections will not be that toxic to commerce.
The Central Bank of Nigeria on Friday said two foreign banks, HSBC and UBS, have closed their offices in Nigeria.
The CBN also revealed that foreign investment had fallen sharply from a year ago as FDI slumped to N379.84 billion ($1.2 billion) in the first half of the year from N532.63 billion ($1.7 billion) a year earlier.
The apex bank also said that the outlook for the Nigerian economy in the second half was “optimistic” given increase in global oil prices and production.
It added however that rising foreign debt and uncertainty surrounding the 2019 presidential election was a drawback.
Reuters reports that investor confidence in Africa’s biggest economy has been shaken since the CBN got entangled in an alleged illegal repatriation of funds battle with telecom giant, MTN Nigeria.
The CBN had in August ordered MTN to bring back $8.1 billion to the country, part of profits which the South African telecoms firm sent abroad. The Nigerian government also slammed the company an additional tax levy. Both parties are now seeking mutually beneficial resolution.
Two foreign banks, UBS and HSBC, depart Nigeria. Simply, they cannot make money in the country as FDI falls and there is nothing really much to do. They would be back after the uncertainty on election clears. Nigeria needs to get to that level where elections will not be that toxic to commerce.
The Central Bank of Nigeria on Friday said two foreign banks, HSBC and UBS, have closed their offices in Nigeria.
The CBN also revealed that foreign investment had fallen sharply from a year ago as FDI slumped to N379.84 billion ($1.2 billion) in the first half of the year from N532.63 billion ($1.7 billion) a year earlier.
The apex bank also said that the outlook for the Nigerian economy in the second half was “optimistic” given increase in global oil prices and production.
It added however that rising foreign debt and uncertainty surrounding the 2019 presidential election was a drawback.
Reuters reports that investor confidence in Africa’s biggest economy has been shaken since the CBN got entangled in an alleged illegal repatriation of funds battle with telecom giant, MTN Nigeria.
The CBN had in August ordered MTN to bring back $8.1 billion to the country, part of profits which the South African telecoms firm sent abroad. The Nigerian government also slammed the company an additional tax levy. Both parties are now seeking mutually beneficial resolution.