The Independent Media and Policy Initiative (IMPI) has said President Bola Tinubu’s economic reforms are delivering stronger gains for Nigeria’s economy than the approaches adopted by previous administrations, citing improving external balances, rising foreign reserves and the planned expansion of global banking giant JP Morgan Chase into the country as evidence of renewed investor confidence.
In a policy statement signed by its Chairman, Dr Omoniyi Akinsiju, the think tank argued that the Tinubu administration’s market-oriented reforms have helped reposition Nigeria as an attractive destination for foreign direct investment (FDI), with JP Morgan’s application for a national merchant banking licence serving as a strong endorsement of the country’s economic direction.
According to IMPI, successive governments between 1999 and 2015 benefited from unprecedented oil revenues but failed to translate the windfall into sustainable industrial growth, diversified exports or enduring economic assets.
The group maintained that much of the surplus earnings were channelled into consumption, debt repayments and interventions that did not create long-term productive capacity.
The organisation noted that Nigeria’s economic vulnerabilities became evident when oil prices crashed in 2014, triggering foreign exchange pressures, widening deficits and recessionary conditions.
It argued that the structural weaknesses inherited over the years necessitated the bold reforms introduced by the Tinubu administration in 2023, particularly the unification of the foreign exchange market and the removal of petrol subsidies.
While acknowledging the initial hardships associated with the reforms, including inflationary pressures and currency depreciation, IMPI said the measures have significantly strengthened Nigeria’s external position.
The group pointed to a shift from persistent current account deficits to sustained trade and current account surpluses, alongside an increase in foreign reserves to over $55 billion.
The think tank also credited the reforms with boosting domestic refining capacity, expanding non-oil exports and improving Nigeria’s standing among international investors.
It noted that global rating agencies, including Moody’s, Standard & Poor’s and Fitch, have upgraded Nigeria’s ratings and outlooks, contributing to improved market sentiment and lower borrowing costs.
On JP Morgan’s planned expansion, IMPI described the move as a watershed in Nigeria’s corporate finance landscape. It said a fully licensed merchant banking operation would enable the global financial institution to participate directly in trade finance, corporate lending, project underwriting and cross-border transactions, thereby reducing barriers faced by multinational investors seeking opportunities in Nigeria.
The group argued that JP Morgan’s presence would facilitate financing for large-scale projects in energy, telecommunications, infrastructure and industry while providing Nigerian businesses and government institutions with easier access to international capital markets.
IMPI further noted that the administration’s strategy appears to be shifting the country’s investment profile from short-term foreign portfolio inflows to more stable, long-term investments in factories, infrastructure and productive enterprises.
According to the group, moderating inflation and declining fixed-income yields are expected to encourage greater investor interest in physical investments and greenfield projects.
It maintained that the combination of macroeconomic reforms, stronger external reserves and growing international confidence demonstrates that Nigeria is gradually building a more resilient and productive economy.
“The current policy regime has taken the harder but necessary path of dismantling unsustainable subsidies and market distortions to build a self-sustaining economy backed by real productivity and stronger external buffers,” the group stated.
IMPI concluded that the growing interest of global institutions such as JP Morgan reflects increasing confidence in Nigeria’s economic prospects and could open the door to a new wave of foreign direct investment capable of accelerating growth, job creation and industrial development.
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