The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan Chase to establish a merchant bank in Nigeria, marking a significant step in the American financial giant’s expansion plans and efforts to deepen the country’s connection with international capital markets....
The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan Chase to establish a merchant bank in Nigeria, marking a significant step in the American financial giant’s expansion plans and efforts to deepen the country’s connection with international capital markets.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, will expand the bank’s longstanding presence in Nigeria, where its activities have largely been conducted through a Lagos representative office.
The development comes amid banking sector reforms and recapitalisation efforts aimed at strengthening financial stability, improving market confidence and increasing the capacity of Nigerian financial institutions to support economic growth.
The CBN has also approved Professor Olukonyinsola Konyin Ajayi, a Senior Advocate of Nigeria (SAN) and partner at Olaniwun Ajayi LP, as an independent non-executive director of the proposed bank.
Ajayi joins Dr Sarah Omotunde Alade and Otunba Seni Adetu in the category of approved independent non-executive directors.
The regulator also approved Adedapo Adedayo Olagunju as managing director, alongside Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
JPMorgan’s proposed merchant banking operation could strengthen access to specialised financial services for Nigerian companies, particularly businesses seeking to raise capital, finance major projects or attract international investors.
Merchant banks typically provide corporate finance, investment banking, capital-raising and financial advisory services.
Their activities differ from conventional retail banking, which focuses on services such as personal deposits, consumer loans and everyday banking transactions.
A locally licensed JPMorgan merchant bank could provide a broader platform for serving Nigerian corporations and institutional clients, subject to the scope of its eventual licence and regulatory requirements.
Its establishment could also intensify competition in Nigeria’s corporate and institutional finance market, potentially encouraging other financial institutions to expand their services and capabilities.
However, the scale of any benefits will depend on the bank’s eventual operations, the clients it serves and the range of services it is authorised to provide.
The apex bank said the approval followed the implementation of its banking sector recapitalisation programme and formed part of broader efforts to strengthen financial stability and deepen Nigeria’s integration with global capital markets.
CBN Governor Olayemi Cardoso said the objective was to build 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 growing interest from international financial institutions reinforced the importance of sustaining reforms and strengthening confidence in Nigeria’s financial markets.
The proposed bank’s establishment is expected to require further regulatory and operational steps.
The CBN has clarified that approval-in-principle is not a final banking licence.
JPMorgan Merchant Bank Nigeria Limited must complete the applicable incorporation, regulatory and operational requirements before the CBN can authorise it to commence business.
Ajayi’s appointment adds extensive legal and corporate transaction experience to the proposed bank’s board.
With more than four decades of professional experience, the senior lawyer specialises in complex litigation, international arbitration, banking law and corporate governance, with significant exposure to the oil and gas, energy and infrastructure sectors.
As a partner at Olaniwun Ajayi LP, he has developed expertise in major commercial transactions, project finance, capital markets, mergers and acquisitions, and cross-border investment.
His professional background includes work on transactions involving international and Nigerian businesses, including Airtel Africa’s $750 million dual listing in the United Kingdom and Nigeria and Seplat Petroleum Development Company’s acquisition of Eland Oil and Gas.
A Harvard- and Cambridge-trained scholar, Ajayi has also received professional recognition from international legal directories, including Chambers and Partners.
His experience in complex transactions and corporate governance could be relevant to board oversight as the proposed bank establishes its operations and navigates Nigeria’s regulatory environment.
His appointment, alongside those of Alade and Adetu, brings legal, financial and corporate leadership experience to the proposed institution.
Other members of the approved board
Alade, a former CBN deputy governor, brings experience in monetary policy, banking operations, public finance and financial regulation.
She also previously served as an adviser to the President on finance and the economy.
Adetu brings senior management experience from multinational businesses, including Guinness Nigeria and East African Breweries, as well as corporate governance and board-level experience.
Olagunju, the proposed managing director, has experience in financial markets and treasury management and previously held senior positions at Access Bank before joining JPMorgan.
The board appointments reflect an effort to combine local market knowledge with international financial expertise as JPMorgan advances its plans to establish a licensed merchant banking operation in Nigeria.
While the CBN’s approval-in-principle marks a major milestone, the proposed bank must still secure its final licence before beginning operations.