Group Says J.P. Morgan’s Nigeria Expansion Signals Global Faith In Tinubu’s Reforms
By Sunday Etuka
A political group, The Democratic Front (TDF), says J.P. Morgan’s move to deepen its presence in Nigeria shows that global investors now see the country’s economy as viable under President Bola Tinubu.
In a statement signed by its Chairman, Mallam Danjuma Muhammad, and Secretary, Chief Wale Adedayo, the group argued that the largest commercial and investment bank in the United States would not have broadened its footprint in Nigeria if it did not believe in the economy’s prospects.
“The decision by J P Morgan, which currently ranks as the largest commercial and investment bank in the US, to broaden its investment in Nigeria is a major lift for the economy. We also see it as a significant development in the government’s bid to attract Foreign Direct Investment (FDI) into the country,” the group said.
It described the development as an investment breakthrough that validates the president’s business-friendly policies and reflects global acceptance of the reforms.
“This is because it is common knowledge that international investors consider macroeconomic stability, exchange-rate risks, regulatory predictability, corporate governance and the quality of investment opportunities before committing funds to any country. So it is against this backdrop that we see this move by JP Morgan as a win for the Tinubu administration,” the statement added.
TDF also noted that the bank’s formal entry could prompt other leading global financial institutions to follow.
“The benefits of having a global merchant bank like J P Morgan in Nigeria’s economy are many. We are sure that other foreign investors will take a cue and follow J P Morgan to Nigeria. And in addition to stabilising the naira, it will provide catalytic capital, global market access, and promote international investors’ confidence in the Nigerian economy,” the group said.
It further regarded the bank’s decision as a stamp of approval on the country’s credibility and credit rating in recent years, and another notable achievement of the president’s economic reforms.
“In view of the improvement in ease of doing business under President Tinubu, J P Morgan’s presence in Nigeria is bound to trigger a flurry of dollars and foreign currency liquidity into the economy by consolidating the current stability in foreign exchange rates, and ensuring that trade flourishes in the country’s investment ecosystem,” the group stated.
TDF added that J.P. Morgan’s entry into the financial sector would create access to surplus credit, improve the ability of local exporters and importers to carry out foreign exchange transactions, raise professional standards among local banks, and create high-paying jobs.
It said the bank would also introduce competitive innovation in the use of modern technology in financial transactions and expose local bankers to global banking practices.
The group urged Nigerians to remain resolute in their collective support for the Tinubu administration.
