·Cardoso says objective is to build stable, internationally connected financial system
·Apex bank seeks public feedback to close gaps in financial reforms, improve policy delivery
James Emejo in Abuja and Nume Ekeghe in Lagos
The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services group, JPMorgan to establish a merchant bank in the country.
The approval serves to deepen international participation in the country’s financial markets.
The apex bank disclosed the approval in a statement issued yesterday by CBN Director, Corporate Communications and Investor Relations Department, Mr. Michael Akuka.
Commenting on the development, CBN Governor, Mr. Olayemi Cardoso, was quoted to have said the central bank remained committed to building a financial system capable of attracting investment and supporting economic growth.
Cardoso explained, “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 the central bank was encouraged by growing interest from international financial institutions but stressed the importance of sustaining reforms and maintaining credible financial markets.
The proposed institution, to operate as JPMorgan Merchant Bank Nigeria Limited, must, however, fulfil outstanding regulatory requirements and obtain a final banking licence before commencing operations.
The approval also aligns with the central bank’s broader efforts to strengthen financial stability, deepen domestic financial markets and restore international confidence in the Nigerian economy.
Under the approval, the apex bank disclosed that it had cleared Adedapo Adedayo Olagunju for appointment as managing director of the proposed merchant bank.
It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
Akuka clarified that the approval-in-principle represented an initial regulatory clearance and does not authorise the proposed bank to begin business.
JPMorgan Merchant Bank Nigeria Limited is expected to complete the necessary incorporation process with the Corporate Affairs Commission (CAC) and satisfy other applicable operational and regulatory conditions before the CBN considers issuing its final licence.
The apex bank reaffirmed its commitment to maintaining a sound and competitive financial system capable of supporting sustainable economic growth and strengthening Nigeria’s links with global financial markets.
The development comes after the conclusion of the recent banking sector recapitalisation programme, which the CBN said had strengthened the capacity, resilience and competitiveness of the industry.
Meanwhile, the CBN has said feedback from businesses, financial institutions, state governments and community groups could reveal gaps between the design of its monetary and financial sector reforms and their impact on households and enterprises.
The bank also called for closer collaboration with stakeholders to improve implementation and expand access to financial services nationwide.
CBN Director, Stakeholder Engagement and Institutional Relations Department, Mrs. Hakama Sidi Ali, stated this in Ibadan, Oyo State, at the CBN Listens Programme, a platform for public engagement on monetary and financial sector policies.
Speaking on the theme, ‘Towards a Robust, Resilient and Inclusive Financial System for Sustainable Economic Growth’, Sidi Ali said sustained dialogue was essential not only to build public confidence and correct misconceptions about the Bank’s policies, but also to identify practical challenges facing businesses and households.
She said the reforms under Cardoso were designed to restore macroeconomic stability, strengthen financial markets, improve transparency and position the financial system to support investment, wealth creation and poverty reduction.
Among the measures she highlighted were the unification of foreign exchange rates and the introduction of the Bloomberg BMatch trading system, which she said were intended to improve transparency, efficiency and confidence in FX transactions.
She also described the completion of the banking sector recapitalisation programme as a major milestone, saying stronger capital positions would improve banks’ ability to absorb shocks and finance productive sectors.
However, she stressed that the reforms went beyond financial stability to ensuring that economic opportunities and financial services reached underserved communities.
The CBN director also highlighted the Bank’s introduction of the Non-Resident Bank Verification Number (NRBVN), designed to improve banking access for Nigerians living abroad, and the unveiling of the Nigeria Payments System Vision 2028.
She said the Bank had introduced measures to strengthen liquidity management and improve monetary policy transmission, including the application of a 75 per cent Cash Reserve Ratio (CRR) to non-Treasury Single Account public sector deposits.
The policy forms part of the CBN’s efforts to manage liquidity in the banking system and contain inflationary pressures.
She also cited the Nigerian Overnight Financing Rate (NOFR), developed in collaboration with the Financial Markets Dealers Association.
According to her, the benchmark provides a transparent, market-based reference rate for short-term funding transactions and brings Nigeria’s money market infrastructure closer to international best practices.
The measures, she said, reflected the Bank’s efforts to improve monetary policy effectiveness, strengthen market operations and restore confidence in the financial system.
On financial inclusion, the CBN director said sustainable growth would remain out of reach without broader access to financial services, particularly for people and businesses in underserved and unserved communities.