JP Morgan MD: CBN’s Professional Regulation, Economic Reforms Influenced Nigeria Expansion

Dapo Olagunju, managing director of J.P. Morgan West Africa, says the Central Bank of Nigeria’s professional regulation and recent economic reforms influenced the United States bank’s decision to deepen its presence in Nigeria.

Olagunju said the reforms implemented over the past three to four years had helped shape the investment environment.

He spoke during a panel discussion on attracting investment to Nigeria at the 32nd Nigerian economic summit in Abuja on Tuesday.

“J.P. Morgan coming in at this time also signifies that the impact of the reform that has been put in place in the last three or four years is almost at the same level” as a previous major shift in Nigeria’s political and economic environment, he said.

Olagunju’s remarks come as the bank moves to establish a merchant banking business in Nigeria, following approval-in-principle from the CBN on October 23.

The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to obtain a final banking licence before it can begin operations.

Olagunju said the bank is backing its assessment of Nigeria with action, adding that it is “putting our money where our mouth is”.

He also praised the quality of banking regulation, saying the CBN is “very well professionally run”.

On his part, Jim Swartz, chairman and managing director of Chevron Nigeria and Mid-Africa, said the company has seen an improvement in Nigeria’s investment environment following the passage of the Petroleum Industry Act and presidential directives aimed at encouraging investment.

He said the company is pursuing drilling programmes in shallow-water assets and participating in major oil projects, while preparing to drill additional wells in its Agbami deepwater field.

But Swartz said the government needs to ensure that investment-friendly policies are translated into durable laws, given the long-term nature of oil and gas projects.

“Our investments are not only for the near term… but multi-decade investments, and so knowing that you will have long-term support in the laws is very important,” he said.

He also identified security in oil-producing communities and competitive operating costs as important factors for sustaining investment.

Swartz said improvements in the Niger Delta had helped address security challenges and reduce losses from oil theft, which he described as a longstanding obstacle to operations.

He said local contractors need to remain competitive globally, noting that Chevron had spent an average of about $1 billion annually with local contractors over the past five years.

‘TELECOM OPERATORS SEEK INFRASTRUCTURE INVESTMENT’

Also speaking, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said rising demand for data and digital services is putting pressure on existing telecoms infrastructure.

He said operators need more investment to expand network capacity, build fibre-optic infrastructure, and replace ageing equipment.

Adebayo also called for consistent government policies and stronger protection of telecoms infrastructure, citing damage to fibre-optic cables during road construction and other activities.

He said investment is needed to extend reliable connectivity beyond major urban centres and close coverage and access gaps.

Adebayo said the sector would require more skilled workers as demand for digital services grows and businesses adopt artificial intelligence.

Afolabi Salisu, chairman of the senate committee on ICT and cybersecurity, said the national digital economy and e-government bill has reached its third reading and could be passed before the end of the year.

The proposed legislation seeks to provide a legal framework for digital transactions and encourage government agencies to digitise their operations.

Salisu also cited plans for a 90,000-kilometre fibre-optic network to improve connectivity nationwide, including in areas where commercial returns may be limited.