CBN grants JPMorgan approval-in-principle to establish Merchant Bank in Nigeria

The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.

The development marks a significant step in the proposed expansion of the international financial institution’s presence in Nigeria and comes amid ongoing reforms aimed at strengthening the country’s banking sector and restoring investor confidence.

In a statement announcing the approval, Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department, said the development reflected growing international interest in Nigeria’s financial markets and long-term economic prospects.

According to the CBN, the approval follows the successful implementation of the banking sector recapitalisation exercise, which is intended to strengthen the resilience and capacity of the Nigerian banking system.

The development also comes amid broader financial sector reforms under CBN Governor Olayemi Cardoso, with a focus on financial stability, deeper financial markets and stronger international confidence in Nigeria’s financial system.

Speaking on the Bank’s reform priorities, Cardoso said the objective was to build 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, stressing that the Bank would continue to pursue reforms, strengthen market credibility and create an environment in which domestic and international institutions could operate effectively.

Akuka, however, clarified that the Approval-in-Principle represents only the initial stage of the regulatory approval process and does not amount to a final banking licence.

He said JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of the necessary operational and regulatory arrangements, before it can receive authorisation to commence business.

The CBN has also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.

Other appointments approved by the regulator include 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.

The proposed bank will be permitted to commence operations only after the CBN issues its final licence.

The apex bank reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and strengthens Nigeria’s participation in global financial markets.