There are indications that investors are increasingly jilting Nigeria bank stocks after the central bank suspended nine lenders from foreign exchange transactions for failing to remit money owed to the government.
The central bank suspended FCMB, First Bank , United Bank for Africa (UBA), Heritage Bank, Keystone Bank, Skye Bank, Diamond Bank , Sterling Bank, and Fidelity Bank on Tuesday for withholding government dollars from the national treasury, banking sources said.
Shares in Diamond Bank fell the most, shedding 7.32 percent in early trade, followed by Sterling bank which was down 3.88 percent. FCMB fell 2.5 percent, FBN Holdings shed 1.5 percent, while Skye Bank was down 1.54 percent, according to reports by Reuters.
Last year, President Muhammadu Buhari ordered government payments to be made into the Treasury Single Account (TSA) in order to foster transparency and curb corruption.
This is not the best of times for lenders in Africa’s most populous nation as a drop in price of oil has impacted negatively on Non Performing Loans (NPLs). Many of them had to recognize these loans as impairment.
Follow us for Breaking News and Market Intelligence.
