JP Morgan calls for regulatory consistency in Nigeria’s quest for capital

Onome Amuge

JP Morgan, a leader in global finance with expertise in investment banking, commercial banking, financial transaction processing, and asset management, has advised countries, including Nigeria, to uphold consistency in their regulatory frameworks, stressing the significance of stability, predictability, and transparency in regulatory environments to attract foreign investment.

Speaking at the 30th Nigerian Economic Summit, Jamie Dimon, chairman and CEO of JP Morgan, emphasised the importance of regulatory consistency in attracting foreign investment.

Dimon asserted that predictable laws, regulations, rules, legislation, and legal environments are essential in securing capital inflow. He also pointed out that many countries experience fluctuations in their legal environment, with governments periodically altering course.

In his analysis of how to draw in investment, the JP Morgan chairman underscored that the key to success is quite straightforward, given that capital flows to countries where it will be secure and productive. He also noted that countries with inconsistent policies often fail to attract investors, though he was quick to note that he wasn’t referring to Nigeria specifically.

“I think we in America do a much better job than I call development finance. If you look at our development institutions, we could double, or triple that, and I think we should, and as they grow. JP Morgan will double, or triple our investment in the development banks, but the real capital is private capital companies around the world that might be sovereign wealth funds, and they want to come here for investment opportunities.

“So to do that, requires consistent laws, consistent regulations, consistent required rules, consistent legislation, consistent legal environments, you will get plenty of capital here, but it’s got to be consistent, because a lot of countries in the legal environment flip back and forth, and the government flips back and forth,” he stated.

Jamie Dimon also revealed that investors are reluctant to put money into countries with inconsistent policies.

“People are just afraid to make those investments, and our investment when we try to do it, at least, since I’ve been to JP, we’ve never left the country. Once we go we get better and smarter, and then we try to enhance what we do here. But those rules to get capital are pretty basic everywhere,” he stated.

JP Morgan, which has a long-standing presence in Nigeria, having opened its representative office in the country in 1982 after operating there since 1960, made its observations about the relationship between capital, investment, jobs, and a country’s economic health.

The company noted that capital, investments, and jobs are essential for any country’s development, but emphasised that good leadership, built on trust and good administration, is critical to managing businesses successfully.

Furthermore, the firm asserted that regulations do not inhibit companies from growing, but are instead necessary to ensure fair and ethical business practices.