The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish JPMorgan Merchant Bank Nigeria Limited, marking a new step in the US financial institution’s plans to expand its presence in the country.
The approval was announced by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department, amid ongoing reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
The proposed bank will be able to commence operations only after meeting the regulator’s requirements and obtaining a final banking licence.
CBN grants preliminary approval to JPMorgan
The CBN said the approval comes after the successful implementation of Nigeria’s banking sector recapitalisation exercise, which was designed to strengthen the resilience and capacity of the financial system.
The development also aligns with the broader reform agenda under CBN Governor Olayemi Cardoso, which focuses on financial stability, deeper financial markets and renewed international confidence.
Cardoso said the bank’s objective was to build a financial system that could support investment and economic growth while attracting greater participation from international institutions.
- “Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth,” he said.
He added that the CBN remained focused on sustaining reforms, strengthening market credibility and creating an environment where domestic and international financial institutions could participate and grow.
JPMorgan’s proposed bank gets board approvals
Alongside the preliminary approval, the CBN approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
The regulator also approved the following appointments:
- Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
- Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.
The AIP represents an initial stage of the licensing process and does not permit the proposed bank to begin business. JPMorgan Merchant Bank Nigeria Limited must complete the applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the necessary operational arrangements, before the CBN can issue a final licence.
The regulator said the process forms part of its commitment to maintaining a sound, competitive and internationally connected financial system.
JPMorgan advances Nigeria expansion plans
The approval follows earlier steps by JPMorgan Chase & Co., the largest bank in the United States by assets, to establish a merchant banking presence in Nigeria.
Nairametrics reported on October 20, 2026, that JPMorgan had deposited N50 billion, equivalent to $38 million, with the CBN as its application for a merchant banking licence progressed.
- The bank plans to convert its longstanding Lagos representative office into a fully operational business branch, expanding the range of services it can provide to Nigerian corporate clients.
- Nairametrics also reported in April 2025 that JPMorgan was preparing to apply for a merchant banking licence as part of efforts to expand its presence in Africa.
The latest approval advances those plans, although the proposed bank must still satisfy the CBN’s outstanding licensing conditions before it can begin operations in Nigeria.