KEY POINTS

• J.P. Morgan says Nigeria’s economic reforms and banking regulation influenced its decision to deepen its presence in the country.
• Chevron says improved security and changes to the petroleum sector have supported its investment plans.
• Chevron wants investment-friendly policies backed by durable laws to protect long-term projects.
• Telecom operators seek more funding for fibre-optic networks, network capacity and equipment upgrades.
• A proposed 90,000-kilometre fibre-optic network aims to extend digital services to underserved areas.

MAIN STORY

J.P. Morgan and Chevron have identified economic reforms, regulatory improvements and more predictable policies as important factors in attracting investment to Nigeria, while telecommunications industry leaders have called for increased funding to expand digital infrastructure.

The Managing Director of J.P. Morgan West Africa, Dapo Olagunju, said Nigeria’s economic reforms and professional banking regulation influenced the bank’s decision to deepen its presence in the country.

Speaking during a panel discussion on attracting investment at the 32nd Nigerian Economic Summit (NES32) in Abuja on Tuesday, Olagunju said reforms implemented over the past three to four years had helped shape the investment environment.

He cited J.P. Morgan’s decision to establish a merchant bank in Nigeria as evidence of its confidence in the country’s reform direction, adding that the bank was backing its assessment with concrete investment.

Also speaking at the session, Chevron Nigeria and Mid-Africa Chairman and Managing Director, Jim Swartz, said the investment environment had improved following the Petroleum Industry Act (PIA) and presidential directives.

He said Chevron was pursuing drilling programmes in shallow-water assets and participating in major oil projects. The company was also preparing to drill additional wells in its Agbami deepwater field.

However, Swartz urged the government to translate investment-friendly policies into durable laws, arguing that investors making long-term commitments needed confidence that the rules would remain supportive of their operations.

“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.

Swartz identified security in oil-producing communities and competitive operating costs as other factors that could influence investment decisions. He said improved security in the Niger Delta had helped address operational challenges and reduce losses associated with oil theft.

He also stressed the importance of maintaining the competitiveness of local contractors, disclosing that Chevron had spent an average of about $1 billion annually with local contractors over the past five years.

In the telecommunications sector, the Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Gbenga Adebayo, called for more investment to meet rising demand for data and digital services.

He said operators needed funding 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 said damage to fibre-optic cables during road construction and other activities threatened reliable connectivity. He added that investment was needed to extend services beyond major cities and close coverage gaps in underserved areas.

He also pointed to the need for more skilled workers as demand for digital services grows and businesses increasingly adopt artificial intelligence.

The Chairman of the Senate Committee on ICT and Cybersecurity, Afolabi Salisu, said the National Digital Economy and E-Government Bill had reached its third reading. He expressed optimism that the proposed law could be passed before the end of the year.

According to Salisu, the bill would establish a legal framework for digital transactions and encourage government agencies to digitise their operations.

He also highlighted plans for a 90,000-kilometre fibre-optic network intended to improve connectivity nationwide, including in areas where commercial returns may be too limited to attract sufficient private investment.

“The proposed network will help extend digital services to underserved areas where commercial returns might be limited,” he said.

THE ISSUES

The remarks at NES32 highlight three factors that influence whether businesses commit capital to Nigeria: confidence in government policy, the security and cost of operating, and the availability of infrastructure.

For financial services, J.P. Morgan’s stated decision to deepen its presence suggests that reforms and regulatory conditions form part of the assessment international banks make when considering investment. However, the remarks provided no figures on the size of the bank’s investment or the specific reforms that influenced its decision.

For the oil and gas sector, the central concern is whether policy improvements can provide enough certainty for projects that take years to develop and recover their costs. Chevron’s planned drilling activity indicates continued investment intentions, but the company’s call for durable laws shows that policy continuity remains important to its long-term calculations.

The telecommunications sector faces a different but related challenge. More people and businesses are demanding data and digital services, but network expansion requires capital for fibre cables, equipment and additional capacity. Damage to infrastructure can also disrupt services and increase the cost of maintaining networks.

These challenges have consequences for Nigerian businesses and households. Unreliable connectivity can disrupt digital payments, online services and business operations, while limited coverage can restrict access to digital opportunities outside major urban centres.

The proposed 90,000-kilometre fibre network could help address coverage gaps, particularly in areas where private operators may struggle to justify investment on commercial grounds. Its practical impact will depend on implementation, funding and the extent to which the network reaches underserved communities.

WHAT’S BEING SAID

• Dapo Olagunju, Managing Director of J.P. Morgan West Africa: He said economic reforms and professional banking regulation influenced the bank’s decision to deepen its presence in Nigeria.
• Jim Swartz, Chairman and Managing Director of Chevron Nigeria and Mid-Africa: “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,”
• Jim Swartz on local contractors: “Chevron has spent an average of about one billion dollars annually with local contractors over the past five years,”
• Afolabi Salisu, Chairman of the Senate Committee on ICT and Cybersecurity: “The proposed network will help extend digital services to underserved areas where commercial returns might be limited, ”

WHAT’S NEXT

The immediate developments to watch include the implementation of policies intended to attract investment, Chevron’s planned drilling activity and progress on the proposed National Digital Economy and E-Government Bill.

The bill’s passage remains a prospective development, as Salisu expressed optimism that it could be passed before the end of the year. The proposed fibre-optic network will also require progress from planning to implementation before its intended benefits can be assessed.

For investors, the key question is whether policy commitments translate into predictable rules and operating conditions. For telecommunications users and businesses, the test will be whether infrastructure investment improves connectivity, reliability and coverage.

BOTTOM LINE

Nigeria is seeking investment across banking, oil and gas, and telecommunications, but attracting capital is only part of the challenge. Investors also want predictable laws, secure operating conditions and infrastructure that supports business activity. The impact on the wider economy will depend on whether these conditions translate into sustained investment, stronger services and more opportunities for Nigerian businesses.

Source: NAN