The managing director of J.P. Morgan West Africa, Dapo Olagunju, says Nigeria’s economic reforms and professional banking regulation influenced the bank’s decision to deepen its presence in the country.
Olagunju said this during a panel discussion on attracting investment at the 32nd Nigerian Economic Summit in Abuja on Tuesday.
He said that reforms implemented over the past three to four years had helped shape the country’s investment environment.
Olagunju said that J.P. Morgan’s decision to establish a merchant bank in Nigeria demonstrated confidence in the impact of the country’s reforms.
He said that the bank was backing its assessment of the country with concrete investment.
Also speaking, the Chairman and Managing Director of Chevron Nigeria and Mid-Africa, Jim Swartz, said that the investment environment had improved following the Petroleum Industry Act (PIA) and presidential directives.
Swartz said that Chevron was pursuing drilling programmes in shallow-water assets and participating in major oil projects.
He said that the company was preparing to drill additional wells in its Agbami deepwater field.
He urged the government to translate investment-friendly policies into durable laws to provide certainty for long-term investments.
“Our investments are not only for the near term but also multi-decade investments, and so knowing that you will have long-term support in the laws is very important,” he said.
Swartz identified security in oil-producing communities and competitive operating costs as critical factors for sustaining investment.
He said that the improved security in the Niger Delta had helped to address operational challenges and to reduce losses associated with oil theft.
He said that the local contractors must remain globally competitive to support sustainable industry growth.
“Chevron has spent an average of about one billion dollars annually with local contractors over the past five years,” he said.
In the telecommunications sector, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, called for increased investment in digital infrastructure.
Adebayo said that growing demand for data and digital services was putting pressure on existing telecommunications infrastructure.
He said that operators needed more investment to expand network capacity, deploy fibre-optic infrastructure and replace ageing equipment.
He also called for consistent government policies and stronger protection of telecommunications infrastructure.
Adebayo cited damage to fibre-optic cables during road construction and other activities as a challenge to reliable connectivity.
He said that investment was needed to extend reliable services beyond major urban centres and bridge existing coverage gaps.
He said that the sector would require more skilled workers as demand for digital services increased and businesses adopted artificial intelligence.
The Chairman of the Senate Committee on ICT and Cybersecurity, Afolabi Salisu, said that the National Digital Economy and E-Government Bill had reached its third reading.
Salisu expressed optimism that the bill could be passed before the end of the year.
He said that the proposed legislation would establish a legal framework for digital transactions and encourage government agencies to digitise their operations.
He also highlighted plans for a 90,000-kilometer fiber-optic network to improve nationwide connectivity.
“The proposed network will help extend digital services to underserved areas where commercial returns might be limited,” he said.
