The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, paving the way for the American financial services giant to expand its institutional operations in the country.
The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, must meet regulatory requirements and obtain a final banking licence from the apex bank before commencing operations.
In a statement on Friday, the CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, announced the approval, describing it as a reflection of growing international interest in Nigeria’s financial sector.
The statement said, “The Central Bank of Nigeria has granted Approval-in-Principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.”
The CBN explained that the development followed the implementation of its banking sector recapitalisation programme and other reforms intended to strengthen financial stability, improve market confidence and deepen Nigeria’s integration with global capital markets.
JPMorgan is one of the world’s largest financial institutions, with operations spanning investment banking, commercial banking, asset management and financial services.
Its proposed merchant banking subsidiary would expand its institutional presence in Nigeria, although the approval does not yet authorise the commencement of banking operations.
Merchant banks primarily provide specialised financial services, including corporate finance, investment banking, capital raising and advisory services, rather than conventional retail banking services.
The apex bank clarified that approval-in-principle represented only the first stage of its regulatory authorisation process.
Akuka explained that JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and satisfy all applicable operational and regulatory requirements before receiving a final licence.
The statement emphasised that the proposed institution could commence operations only after the CBN had issued the necessary final authorisation.
Speaking on the development, the CBN Governor, Olayemi Cardoso, said the bank’s reform agenda was aimed at establishing a financial system capable of attracting investment and supporting economic growth.
“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,” Cardoso said.
He added that the interest shown by international financial institutions reflected the importance of sustaining reforms and strengthening confidence in Nigeria’s financial markets.
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive,” he stated.
The CBN also announced its approval of Adedapo Olagunju as the proposed bank’s Managing Director.
Other approved appointments include Latter George, Nzelu Izunwanne and Syed Murtaza as Non-Executive Directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni were approved as Independent Non-Executive Directors.
The appointments form part of the proposed institution’s preparations to meet regulatory and governance requirements ahead of its eventual commencement of operations.
The CBN maintained that the approval aligned with its broader reform programme under Cardoso, which focuses on strengthening the banking system, improving market credibility, and encouraging greater participation by international financial institutions.
It reiterated its commitment to maintaining a competitive, internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.
The PUNCH had earlier reported that JPMorgan Chase & Co deposited N50bn with the CBN as part of its efforts to secure a merchant banking licence and expand its operations in Nigeria.
The deposit, valued at about $38m, met a key requirement in the lender’s application and signalled its readiness to establish a licensed banking operation in the country.