HSBC, a global banking giant and UBS, a Swiss private bank have closed their representative offices in Nigeria.
This was announced by the Central Bank of Nigeria (CBN) in a report on Friday, November 2, 2018. The report did not however state why the banks closed their offices.
According to UBS it opened in Nigeria in mid-2014 to “connect prospective clients with its offshore centers in Switzerland, the UK, Dubai and Singapore, where dedicated client advisers offer personalised service and full access to the bank’s vast global resources”.
The CBN also revealed that foreign direct investment in Nigeria fell to 379.84 billion naira in the first six months of 2018, compared to 532.63 billion naira recorded in 2017.
You will recall that in July, 2018 HSBC predicted that a victory for President Muhammadu Buhari in 2019 would have a negative effect on the economy.
Responding the presidency asked the bank to return stolen assets allegedly hidden in its coffers.
The bank also projected that for the second half of the year, higher oil prices and production would serve as gains but rising foreign debt and uncertainty surrounding the 2019 general election would be a drawback.
According to the CBN, three lenders, which they did not name failed to meet their minimum liquidity ratio of 30 percent.
It added that non-performing loans dropped from 15 percent in 2017 to 12.4 percent as of June 2018, adding that this was still a long way above its five percent threshold.