Global financial giant JPMorgan has secured preliminary regulatory approval to establish a merchant bank in Nigeria, opening a new chapter in its participation in the country’s financial services market as the Central Bank of Nigeria pushes to strengthen the banking sector.
The proposed institution, to operate as JPMorgan Merchant Bank Nigeria Limited, has received Approval-in-Principle (AIP) from the CBN, although it cannot begin operations until it obtains a final operating licence.
The approval was announced on Friday by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department, who linked the development to ongoing reforms aimed at improving financial stability, restoring market confidence and expanding Nigeria’s connections with international capital markets.
According to the apex bank, the approval followed the successful implementation of the banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of Nigerian banks.
The entry of the proposed merchant bank comes as the CBN seeks to position Nigeria’s financial system to attract more international institutions and support investment-driven economic growth.
CBN Governor Olayemi Cardoso said the bank remained committed to building a financial system that could compete internationally while maintaining stability and public confidence.
“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 said.
He added that the growing interest of international financial institutions in Nigeria was encouraging, stressing that the CBN would sustain reforms designed to strengthen market credibility and create an enabling environment for both domestic and foreign investors.
The apex bank also approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.
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 received approval as Independent Non-Executive Directors.
However, the Approval-in-Principle does not authorise the proposed institution to commence business immediately. JPMorgan Merchant Bank Nigeria Limited must first satisfy the applicable regulatory requirements and obtain the CBN’s final operating licence before commencing operations.
The development represents a further step in Nigeria’s efforts to deepen its financial markets and attract international participation, with the proposed bank’s eventual commencement of business dependent on the completion of the licensing process
