By definition, business sounds abstract but in so far as it is operated by humans, it responds to stimulus. This explains why JP Morgan is considering returning to Nigeria. The Association of Bureau De Change Operators of Nigeria, ABCON, has said that the federal government’s plans to open talks with JPMorgan for its reinstatement in the local-currency emerging-market bond index will bring great benefits to the economy.
ABCON President, Alhaji Aminu Gwadabe, told newsmen in Lagos that JP Morgan’s return to Nigerian market will lead to improved foreign exchange (forex) inflows and boost apex bank’s chances of achieving its $60 billion foreign reserves target in 2018 in spite of any shock in oil market this year,
He praised the government’s plans to begin talks with JP Morgan about being included in its bond index for emerging markets. Naira securities were removed from the JP Morgan Index in 2015 because of foreign-currency shortages.
The ABCON boss said such return will also enable Nigeria benefit from the $20 billion overseas investment planned by the US bank which will see it raise wages, hire more, and open new branches in emerging market countries.
Alhaji Gwadabe said, “I want to use this opportunity to congratulate the CBN and the federal government on the good news of JP Morgan’s renewed interest in Nigerian bond market which will enhance investors’ confidence in our economy. The CBN has brought stability in the forex market by making dollar available to genuine forex users especially at the retail-end of the market. That has ended volatility in the market and boosted the confidence of foreign investors in the local economy”.
The ABCON boss said the US bank’s return to Nigeria will enable the government access needed funds for infrastructural development in the economy and urged the CBN to explore the opportunity in reducing the multiple exchange rates and create more confidence for foreign investors.
