Only countries with consistent policies can attract capital – JP Morgan

For Nigeria and other developing countries to attract patient foreign direct investment they must have consistent economic policies, Jamie Dimon, chief executive officer of JP Morgan Chase has said.

Dimon, speaking during a fireside chat at the 30th Nigerian Economic Summit themed ‘Collaborative Action for Growth, Competitiveness, and Stability,’ on Wednesday said the capital will go anywhere provided there’s a guarantee for high returns.

“Capital goes towards where people think they can make some money and have a return on capital in the long run, and very often, countries that have very inconsistent policies, I’m not talking about Nigeria,” Dimon said.

“There has to be consistent laws, consistent regulations, consistent required rules, consistent legislation, consistent legal environments,” he explained.

“Companies that would come here to invest would look for consistent legislations, rules, legal environments. You get plenty of capital if you ensure this,” Dimon added.

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He said countries grow on the back of foreign and domestic investments, easing the doing of business and ensuring proper regulations that would inhibit business growth.

In less than two years, more than 10 multinationals have left Africa’s largest economy, citing harsh business environment and unstable government policies.

Businesses in Nigeria are grappling with fluctuations in exchange rates, rising energy cost, inflation and soaring interest rates, all draining their profits and straining operations.

Analysts have said the multinational exodus has left the already shrinking FDI to decline to as low as $29.8 million in the second quarter of 2024.

Speaking on how technology is changing the face of the world, Dimon stated that the evolution of technology, especially Artificial Intelligence is strengthening the banking system in terms of data privacy and customer services.

He stressed the need for countries to have a viable financial system, noting that economies of the world grow on a healthy banking system.

“It’s really important to have a healthy financial system because it provides the flywheel to help the economy. Usually, when you have a healthy financial system you have a healthy economy,” Dimon said.