CBN Approves JPMorgan to Establish Merchant Bank in Nigeria

The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a potential expansion of the American financial institution’s presence in the country.

The proposed bank, JPMorgan Merchant Bank Nigeria Limited, must meet outstanding regulatory requirements and obtain a final banking licence before commencing operations.

The CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, said the approval reflected growing international interest in Nigeria’s financial markets and economic prospects.

According to the apex bank, the development comes amid ongoing reforms aimed at strengthening financial stability, improving investor confidence and deepening Nigeria’s integration with global capital markets.

The approval also follows the completion of the banking sector recapitalisation exercise, which the CBN said had strengthened the resilience and capacity of the Nigerian banking system.

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

“JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and the completion of necessary operational and regulatory arrangements, before it can be authorised to commence business,” the CBN said.

The development comes amid broader financial sector reforms under CBN Governor Olayemi Cardoso, whose administration has prioritised financial stability, market development and renewed international confidence in Nigeria’s financial system.

The CBN said its objective was to build a competitive and internationally connected financial system capable of supporting investment and economic growth.

The apex bank also confirmed the approval of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.

Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

JPMorgan Merchant Bank Nigeria Limited will be permitted to commence operations only after securing its final banking licence and satisfying all applicable regulatory conditions.

The CBN reaffirmed its commitment to maintaining a sound and competitive financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.