CBN grants JPMorgan approval to establish Merchant Bank in Nigeria

The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services giant JPMorgan to establish a merchant bank in Nigeria, in a move expected to deepen the country’s financial markets and strengthen its links with international capital markets.

The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, is expected to commence operations after fulfilling the remaining regulatory requirements and obtaining a final banking licence from the apex bank.

The CBN said the approval reflects growing international interest in Nigeria’s financial sector and follows the successful implementation of the banking industry recapitalisation exercise, which was aimed at strengthening lenders’ capacity and resilience.

In a statement announcing the development, Michael Akuka, Director of Corporate Communications and Investor Relations at the CBN, said the move comes amid ongoing reforms to improve financial stability, restore investor confidence and deepen Nigeria’s integration with global financial markets.

The development also aligns with the broader reform agenda of CBN Governor Olayemi Cardoso, which focuses on strengthening the financial system, improving market credibility and attracting domestic and foreign investment.

Cardoso said the apex bank was committed to building a stable, competitive and internationally connected financial system capable of supporting investment and 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,” he said.

He added that the CBN was encouraged by the growing interest of international financial institutions in Nigeria, noting that the bank would sustain reforms to create an environment in which domestic and foreign institutions could operate and thrive.

However, the CBN clarified that the approval-in-principle represents only the initial stage of the licensing process and does not authorise JPMorgan to commence banking operations.

The proposed bank must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before the CBN can issue a final licence.

The apex bank has approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed institution.

It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.

Similarly, Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

JPMorgan’s proposed entry into Nigeria’s merchant banking segment comes as the country seeks to strengthen its financial institutions, expand access to capital and attract international investors following a series of monetary and financial sector reforms.

The recapitalisation exercise, which required banks to raise additional capital to meet revised minimum capital thresholds, was designed to improve their capacity to finance large-scale investments and support economic growth.

The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic development and expands Nigeria’s participation in global financial markets.

JPMorgan Merchant Bank Nigeria Limited can commence operations only after satisfying the outstanding regulatory conditions and securing the apex bank’s final approval.