The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in the country, paving the way for the American financial giant to deepen its presence in Africa’s largest economy.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, must satisfy the remaining regulatory requirements and obtain a final banking licence from the apex bank before it can begin operations.
The CBN Director of Corporate Communications and Investor Relations, Michael Akuka, announced the approval in a statement on Friday, describing the development as a sign of growing international interest in Nigeria’s financial sector.
“The Central Bank of Nigeria has granted Approval-in-Principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited,” the statement read.
The approval comes as the CBN implements banking sector reforms aimed at strengthening financial institutions, improving investor confidence and expanding Nigeria’s connections with international capital markets.
JPMorgan’s planned entry could strengthen competition for corporate financing and investment banking business in Nigeria, particularly as local companies seek funding for expansion and international investors look for opportunities in the country. However, the bank’s eventual impact will depend on the services it offers, the scale of its operations and how effectively it competes with established financial institutions.
JPMorgan ranks among the world’s largest financial services groups, with businesses spanning investment banking, commercial banking, asset management and other financial services. Its proposed Nigerian subsidiary would extend its institutional presence in the country through a specialised banking model rather than conventional retail banking.
Merchant banks typically provide corporate finance, investment banking, capital raising and financial advisory services to businesses, institutions and other sophisticated clients.
The CBN clarified that approval-in-principle represents only the first stage of its authorisation process. JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and meet the applicable operational and regulatory requirements before the regulator can issue its final licence.
The bank cannot commence operations until it secures that final authorisation.
Speaking on the development, CBN Governor Olayemi Cardoso said the regulator’s reform agenda sought to build a financial system capable of attracting investment and supporting 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 said.
He added that interest from international financial institutions underscored the importance of sustaining reforms and strengthening confidence in Nigeria’s financial markets.
CBN approves bank’s proposed leadership
Alongside the preliminary licence, the CBN approved several appointments to the proposed merchant bank’s leadership.
The regulator approved Adedapo Olagunju as the proposed managing director, while Latter George, Nzelu Izunwanne and Syed Murtaza received approval to serve as non-executive directors.
The CBN also approved Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.
The appointments form part of the proposed institution’s preparations to establish a governance structure that meets the regulator’s requirements.
JPMorgan’s N50bn deposit signals commitment
The development follows an earlier report by a source that JPMorgan Chase & Co deposited N50bn with the CBN as part of its efforts to obtain a merchant banking licence and expand its Nigerian operations.
The deposit, valued at approximately $38m at the time of the report, met a key requirement in the American lender’s application and indicated its preparations to establish a licensed banking operation in Nigeria.
For Nigeria’s financial sector, JPMorgan’s proposed entry presents an opportunity to attract more international capital and deepen corporate banking services, but it also raises expectations about the benefits that foreign financial institutions can deliver to the domestic economy.
Stronger competition could improve access to specialised financial advice, capital-raising services and international financing networks for Nigerian businesses. Companies seeking to raise funds or pursue cross-border transactions could particularly benefit from a wider pool of financial partners.
However, preliminary approval alone does not guarantee those outcomes. The immediate milestone remains the completion of regulatory requirements and the issuance of a final licence.
JPMorgan’s next steps will therefore determine when it can begin operating in Nigeria and how significantly its arrival will reshape the country’s merchant banking and corporate finance market.
