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, in a development signalling growing international confidence in the country’s financial sector reforms and long-term economic prospects.

The proposed establishment by one of the world’s leading financial institutions is expected to further deepen Nigeria’s financial markets and strengthen its integration with global capital markets.

Announcing the approval, the Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, said the development comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and positioning Nigeria’s financial system for greater international participation.

He noted that the approval follows the successful implementation of the banking sector recapitalisation exercise, which has enhanced the resilience and capacity of the Nigerian banking system.

The development also aligns with the broader reform agenda of the CBN Governor, Olayemi Cardoso, focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in the country’s financial system.

Cardoso said the CBN’s objective was to build a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.

He expressed optimism over the growing interest of international financial institutions in Nigeria, assuring that the apex bank would sustain reforms, strengthen market credibility and create an enabling environment for both domestic and foreign investors.

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

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

The CBN also approved the nomination of Mr Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.

Similarly, Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as Non-Executive Directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors.

The apex bank emphasised that the proposed institution can only commence operations after obtaining its final banking licence.

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