The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, following the banking sector recapitalisation exercise. The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to operate after fulfilling the remaining regulatory requirements and obtaining a final banking licence from the CBN.…...
The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, following the banking sector recapitalisation exercise.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to operate after fulfilling the remaining regulatory requirements and obtaining a final banking licence from the CBN.
The Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, announced the approval in a statement on Friday, October 23.
According to the statement, the approval reflects growing international interest in Nigeria’s financial markets and follows reforms aimed at strengthening financial stability and restoring confidence in the country’s banking system.
The CBN said the development comes after the successful implementation of its banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of Nigerian banks.
The approval also forms part of the broader reforms under CBN Governor Olayemi Cardoso, aimed at deepening financial markets and improving Nigeria’s integration with global capital markets.
Speaking on the reforms, Cardoso said: “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.
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“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.”
The apex bank, however, clarified that the approval-in-principle is only the first stage of the regulatory process and does not authorise the proposed bank to commence operations.
It said JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before the issuance of a final licence.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank.
The bank’s approved non-executive directors are Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as independent non-executive directors.
The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.