The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a significant development for the country’s financial sector and its efforts to attract international investment.
The proposed institution will operate as JPMorgan Merchant Bank Nigeria Limited, subject to the completion of regulatory requirements and the granting of a final banking licence.
The CBN announced the development through Michael Akuka, Director of its Corporate Communications and Investor Relations Department, who said the approval came amid ongoing reforms aimed at strengthening financial stability, boosting investor confidence and improving Nigeria’s connection to global capital markets.
The move follows the completion of Nigeria’s banking sector recapitalisation exercise, which was designed to strengthen the financial system’s capacity and resilience.
It also aligns with the broader reform agenda under CBN Governor Olayemi Cardoso, which focuses on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system.
“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,” Cardoso was quoted as saying.
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive.”
However, the CBN clarified that the approval-in-principle is only the first stage of the regulatory process and does not amount to a final banking licence.
Before the proposed bank can begin operations, JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements.
The CBN has also approved the nomination of Adedapo Olagunju as managing director of the proposed 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 have also been approved as independent non-executive directors.
Despite the approval-in-principle, the proposed institution cannot commence business until the CBN issues its final banking licence.
The development comes as Nigeria continues efforts to strengthen its financial markets and attract more international financial institutions, with the proposed JPMorgan merchant bank expected to add another player to the country’s financial services sector if it secures final approval.
