HSBC and UBS Nigeria close offices in Lagos

The Central Bank of Nigeria (CBN) said on Friday that HSBC and UBS Nigeria had closed their representative offices. No reasons were provided.

Their closures come after news that foreign direct investment (FDI) into Nigeria has fallen from a year ago. FDI into Nigeria totalled 379.84 billion naira ($1.2 billion) in the first half of 2018 compared with 532.63 billion naira ($1.7 billion) a year earlier.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

HSBC had recently become mired in the country’s political debate. An analyst at the bank recently warned that a second term for president Muhammadu Buhari, who is seeking re-election in February 2019, may stall economic recovery. A presidential spokesperson hit back accusing HSBC of money laundering.

A Nigerian investigation alleged HSBC had been involved in former military dictator Sani Abacha’s efforts to launder $100 million. HSBC has not commented on the accusation.

Representatives from HSBC speaking at PBI London in 2015 said that Africa should be a key focus for the industry citing a UN forecast where Africa’s population is set to account for 40% of the world’s population by 2100.

UBS began efforts to expand its private banking and wealth management services in the country in 2013 after reports revealed that the country’s wealthy population was also surging.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a ruling that has rattled many foreign investors, South African telecoms company MTN was ordered to return $8.1bn of “illegally” repatriated dividends back to Nigeria.

UBS and HSBC declined to comment on the closing of their offices. Both banks had opened representative offices in Lagos, the country’s commercial capital.