Global financial giant J.P. Morgan is preparing to expand its business in Nigeria by establishing a merchant bank, with operations expected to begin before the end of 2026 if regulatory approval is secured.
Dapo Olagunji, the firm’s managing director for West Africa, disclosed the plan on October 8 during the Nigeria–Asia Financial Connectivity Dialogue in Singapore.
The proposed venture comes as Nigeria intensifies efforts to attract foreign capital, strengthen its financial sector and increase international participation in its domestic markets.
The dialogue was organised by the Central Bank of Nigeria (CBN) in partnership with J.P. Morgan, Nigerian Exchange Group (NGX) and FMDQ Group.
Nigeria Strengthens Engagement With Global Investors
The proposed banking operation is part of a broader period of engagement between Nigerian financial authorities and international market participants.
CBN Governor Olayemi Cardoso has been meeting with financial institutions and other market stakeholders in Singapore ahead of the annual meetings of the International Monetary Fund and World Bank in Bangkok.
These engagements come as Nigeria seeks to deepen its financial connections with international markets and encourage greater investment in the country’s economy.
However, J.P. Morgan’s proposed merchant bank will need to obtain the relevant regulatory approvals before it can begin operations.
Nigeria Returns to J.P. Morgan’s Bond Market Benchmark
The planned expansion follows Nigeria’s inclusion in a new emerging markets index introduced by J.P. Morgan.
On September 15, the financial institution announced Nigeria’s inclusion in the Government Bond Index–Emerging Markets Edge (GBI-EM Edge), assigning the country a weighting of 7.4 per cent.
The benchmark, launched at the end of September, tracks local-currency government bonds across frontier markets.
Nigeria’s addition comes almost 11 years after it was removed from J.P. Morgan’s earlier GBI-EM index in 2015.
With a 7.4 per cent weighting, Nigeria is set to account for a substantial share of the new benchmark. This could make its domestic government securities more visible to international investors who track the index when making fixed-income investment decisions.
What the Planned Expansion Could Mean for Nigeria
The proposed merchant bank would represent another development in J.P. Morgan’s Nigerian operations, while the country’s inclusion in the bond index could strengthen its exposure to global fixed-income investors.
Increased international attention could create more opportunities for Nigerian government securities to attract investment. However, the actual impact will depend on investor decisions and broader market conditions.
For now, the planned merchant bank remains subject to regulatory approval, with operations targeted to commence before the end of 2026.
