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Mr Peter Obi is a shameless alarmist. The JP Morgan’s new deposit of ₦50 billion ($38 million) with the Central Bank of Nigeria (CBN) has completely shattered his own side of the arguement on the status of Nigerian economy.
After bringing back Nigeria in its Government Bond Index (GBI-EM) on September, the global leading multinational financial services firm is poised to expand its presence in Nigeria. The firm’s managing director in West Africa, Dapo Olagunji, announced on October 8 that JP Morgan would start operating merchant bank all across the country before the end of the year or in the first months of 2027. According to Bloomberg, the deposit is one of the CBN final regulatory requirements before approval.
“Nigeria’s inclusion in the GBI-EM index was generally seen as a big step forward in its integration into global financial markets, opening the market to new investment and raising its profile worldwide,” Alan Cameron, an economist at Exotix, said in 2015, bemoaning that the good sign was then reversed.
Nigeria was first listed on JP Morgan’s emerging government bond index in October 2012. But due “limited transparency” and other shady deals which discomfort foreign investors, the financial giant removed the country three years later.
In fact, JP Morgan’s decision is timely. It’s more than a reversal. It’s an endorsement to an economy that’s beginning to shine its beautiful prospects before the world.
Also, the development once again bring to bare the many lies of alarmist Peter Obi, the 2027 presidential candidate of the Nigeria Democratic Congress (NDC). Obi has taken on every opportunity to badmouth the economic policies of President Bola Tinubu. He always claims he would do something differently but never specifying his positions in any particular issue, including fuel subsidy.
Unlike Alhaji Atiku Abubakar who openly said he would return fuel subsidy if elected, Peter Obi has refused to stand anywhere on the debate. Nigeria couldn’t have sustained fuel subsidy beyond 2024, according to analysts, so Atiku’s stance is one taken in pure ignorance on how the economy works.
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To understand what returning Nigeria to JP Morgan’s index is all about, take a look at some of the devastating effects of removing a country from it. Excluding a country, as it was done to Nigeria since 2015, would immediately highlights it before international market as a high risk, eroding institutional investors’ confidence without delay.
It would mount pressure on the country’s currency while leading to higher domestic borrowing costs as more money flow out of the economy.
jp morgan nigeria