The Central Bank of Nigeria (CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in Nigeria, marking a significant step in the American financial institution’s plans to expand its presence in the country’s financial markets.
The proposed lender, JPMorgan Merchant Bank Nigeria Limited, must obtain a final banking licence from the apex bank before it can commence operations.
In a statement issued on Friday, the CBN said the approval reflects growing international interest in Nigeria’s financial markets and economic prospects.
Michael Akuka, director of the CBN’s Corporate Communications and Investor Relations Department, said the development comes amid ongoing reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
The regulator added that the approval follows the completion of the banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of the Nigerian banking system.
JP Morgan Merchant Bank Must Obtain Final CBN Licence
The CBN clarified that the approval-in-principle represents the first stage of the regulatory approval process and does not constitute a final banking licence.
According to the regulator, JPMorgan Merchant Bank Nigeria Limited must satisfy all applicable regulatory requirements before it can begin operations.
These include incorporation with the Corporate Affairs Commission (CAC) and the completion of the necessary operational and regulatory arrangements.
The proposed bank will only be authorised to commence business after the CBN issues its final licence.
The distinction means that although JP Morgan has secured an important regulatory milestone, the proposed merchant bank is not yet authorised to begin banking operations.
CBN Says Reforms Aim to Attract International Investment
The approval comes amid broader financial sector reforms under CBN Governor Olayemi Cardoso, whose administration has emphasised financial stability, deeper capital markets and renewed international confidence in Nigeria’s financial system.
Cardoso said the apex bank aims to build a financial system that can compete internationally and support investment and economic growth.
“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.
He also welcomed the growing interest of international financial institutions in Nigeria.
The CBN governor said the regulator would continue to sustain its reforms, strengthen the credibility of Nigerian markets and create an environment where domestic and international financial institutions can participate and thrive.
The proposed establishment of JPMorgan Merchant Bank Nigeria Limited comes as Nigeria seeks to strengthen its position within global financial markets and attract more international capital.
CBN Approves Adedapo Olagunju as Managing Director
Alongside the approval-in-principle, the CBN approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
The regulator also approved several non-executive and independent non-executive directors for the proposed institution.
Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors.
Meanwhile, Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The appointments form part of the proposed bank’s leadership and governance structure as it progresses through the remaining regulatory requirements.
However, the institution must still obtain its final banking licence before it can commence operations.
JP Morgan’s Expansion Plans in Nigeria
The latest development follows reports in 2025 that JP Morgan was planning to transform its Lagos representative office into a fully fledged business branch as part of a broader strategy to expand its presence across Africa.
The approval-in-principle for the proposed merchant bank represents a further step in the American financial institution’s potential expansion in Nigeria.
On October 20, the bank deposited N50 billion, equivalent to approximately $38 million, with the CBN, according to the report.
The proposed merchant bank could further strengthen JP Morgan’s institutional presence in Nigeria once all regulatory requirements have been met.
However, the precise scope of its planned operations will depend on the final licence and applicable regulatory approvals.
What JP Morgan’s Proposed Merchant Bank Means for Nigeria
The proposed establishment of JPMorgan Merchant Bank Nigeria Limited comes at a time when Nigeria is pursuing reforms to strengthen its banking industry and improve confidence in the financial system.
The entry of another major international financial institution could support competition, deepen financial markets and strengthen connections between Nigerian businesses and international capital markets.
Merchant banks generally provide services such as corporate finance, investment advisory, capital raising and other financial services to businesses and institutional clients, subject to their regulatory authorisations.
For Nigerian companies seeking financing, investment advice or access to international capital, the proposed bank could create additional opportunities if it receives its final licence and commences operations.
Nevertheless, the approval-in-principle should not be confused with the commencement of business. JPMorgan Merchant Bank Nigeria Limited must first satisfy the CBN’s outstanding regulatory requirements.
The apex bank reiterated 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..
