JOHANNESBURG -(MarketWatch)- J.P. Morgan Chase & Co. /quotes/zigman/272085/quotes/nls/jpm JPM -1.04% is boosting its presence in Nigeria as the bank seeks to take advantage of what it sees as Africa's big growth story over the next decade, it said Thursday.
The move will see J.P. Morgan, whose services in Nigeria include investment banking advice, trading, structuring and risk management capabilities, increase the size of its office in Nigeria to more than 10 from fewer than five.
"Nigeria is one of the fastest-growing economies in the world, and it is transitioning to a more diversified economy," said Tosin Adewuyi, J.P. Morgan's senior country officer for Nigeria. "Nigeria is going to be Africa's growth story for the next 15 to 20 years."
The International Monetary Fund forecasts that the Nigerian economy will grow by 6.6% this year, outpacing the 5.8% average growth rate across sub-Saharan Africa.
Renaissance Capital said this year that Nigeria, Africa's most populous country and its third-largest economy, could surpass South Africa as the continent's biggest economy in 2014.
However, there are risks behind the move. Increased violence from an insurgency known as Boko Haram has left many dead in bombings and changes to the country's fuel subsidies threatens to hamper consumers' spending power.
Other international companies that are eyeing Nigeria's thriving economy include McKinsey & Co., which opened an office in Nigeria in 2010 having previously serviced the country out of Johannesburg, and South African bank Nedbank Group Ltd. , which said this year it is looking to increase its presence in Nigeria.
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