The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in the country, the CBN said on Friday. The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, must still meet regulatory requirements and obtain a final banking licence from the apex bank before it can begin operations. The CBN's Director of Corporate Communications and Investor Relations, Michael Akuka, announced the approval, describing it as a reflection of growing international interest in Nigeria's financial sector.
Merchant banks provide specialised financial services including corporate finance, investment banking, capital raising and advisory services, rather than conventional retail banking. The approval-in-principle represents only the first stage of the CBN's regulatory authorisation process. JPMorgan Merchant Bank Nigeria Limited must complete incorporation with the Corporate Affairs Commission and satisfy all applicable operational and regulatory requirements before receiving final authorisation to commence operations, the CBN clarified.
The development follows the implementation of the CBN's banking sector recapitalisation programme and other reforms intended to strengthen financial stability, improve market confidence and deepen Nigeria's integration with global capital markets. CBN Governor Olayemi Cardoso said the bank's reform agenda was aimed at establishing a financial system capable of attracting investment and supporting economic growth. He stated: "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."
The CBN also approved Adedapo Olagunju as the proposed bank's Managing Director. Approved Non-Executive Directors are Latter George, Nzelu Izunwanne and Syed Murtaza, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors. These appointments are part of the proposed institution's preparations to meet regulatory and governance requirements before operations begin.
Cardoso said the interest shown by international financial institutions reflected the importance of sustaining reforms and strengthening confidence in Nigeria's financial markets. "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," he stated. JPMorgan previously deposited N50 billion with the CBN as part of its application process.
For investors and businesses seeking institutional financial services in Nigeria, the approval signals expanding access to international-standard merchant banking capabilities including corporate finance and capital raising services.