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| Image credit, CBS News |
Global banks HSBC and UBS have closed their offices in Nigeria, the country’s central bank said in a report on Friday as it revealed foreign investment had fallen sharply from a year ago, reuters.com reports.
The bank said foreign direct investment in Nigeria fell to 379.84 billion naira ($1.2 billion) in the first half of the year from 532.63 billion naira ($1.7 billion) a year earlier. It did not give reasons for the bank closures.
HSBC was not available to comment and UBS declined to comment.
The central bank said the outlook for the Nigerian economy in the second half was “optimistic” given higher oil prices and production but rising foreign debt and uncertainty surrounding the 2019 presidential election was a drawback.
Investor confidence in the West African country has been shaken since the central bank in August ordered MTN (MTNJ.J) to bring back $8.1 billion to the country, part of profits which the South African telecoms firm sent abroad.
An HSBC research note dated July 18 said a second Buhari term “raises the risk of limited economic progress and further fiscal deterioration, prolonging the stagnation of his first term, particularly if there is no move towards completing the reform of the exchange rate system or fiscal adjustments that diversify government revenues away from oil.” Read More Here
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