Morgan Stanley Investment Management has applauded President Bola Ahmed Tinubu over the bold reforms he has taken to reposition Nigeria, Africa’s biggest economy, back to economic growth and a place of increased investment.
Morgan Stanley, the American investment management services company based in New York City, in its recent advisory report titled “Tales From the Emerging World: Nigeria’s New Dawn?” released on Monday, had encouraging words for the present administration, especially as its major reforms take a hard toll on the majority of Nigerians.
It said, “The reforms are a positive step, but more needs to be done to ensure momentum is not lost. Tinubu and his team of technocrats have a unique opportunity to free up the economy and attract foreign investors looking for sustained growth.”
The advisory company, which is affiliated with Morgan Stanley, the American investment bank, noted that as painful as fuel subsidy removal was, it was a necessary step to take the country back into economic growth, which the former President, Muhammadu Buhari, missed.
It said, “The removal of subsidies is likely to prove painful in the near term, especially as it will likely erode consumer confidence, send inflation higher, and hurt consumption.
“We believe Tinubu’s actions could potentially mark a turning point and deliver medium-term growth, which will spur the emergence of a mass consumer market in one of the fastest-growing populations in the world.”
It advised that the new government, which is more than 60 days in office, implement bold and sound policies that will unleash its human capital potential, which is perhaps its greatest asset, taking into consideration its huge population.
It also advised the Tinubu government to direct more attention to investing in education, skill development, and everything else that can improve the country’s low literacy rates.
It said, “We would urge the new administration to focus on investments in educational outcomes and skill development, everything from improving too-low literacy rates to prioritizing STEM fields.
“Bridging the gap in outcomes between the North and South of the country will be key, but we can think of no better use for the $10 billion in annual savings from fuel subsidies.”
The investment and financial advisory company had kind words for the mobile banking industry, which has continued to post double-digit growth in a country where the economy is seriously stressed.
It said, “We therefore think mobile banking will be an attractive investment opportunity in the coming years.” A statement like this from them puts positive reinforcement on the giant strides the fintech industry is making in the country.
The fintech industry in Nigeria, according to Statista, registered a total funding value of $507 million from January to August this year alone.