JP Morgan has secured approval-in-principle from the Central Bank of Nigeria (CBN) to establish a merchant bank in Nigeria, marking a step towards expanding its operations in the country’s financial sector.
The proposed lender, JPMorgan Merchant Bank Nigeria Limited, must obtain a final banking licence from the apex bank before it can commence operations.
The approval comes as Nigeria seeks to strengthen its financial system, attract international investment and improve confidence in its financial markets following reforms introduced by the CBN.
According to a statement issued on Friday by Michael Akuka, director of the CBN’s corporate communications and investor relations department, the development reflects growing international interest in Nigeria’s financial markets and economic prospects.
The CBN said the approval followed the completion of the banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of the country’s banking industry.
However, the approval does not authorise the proposed bank to begin business immediately.
The regulator said JPMorgan Merchant Bank Nigeria Limited must meet all applicable requirements, including incorporation with the Corporate Affairs Commission and the completion of operational and regulatory arrangements, before receiving its final licence.
CBN Governor Olayemi Cardoso said the regulator remained committed to building a financial system capable of supporting 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 added that the apex bank was encouraged by the growing interest of international financial institutions in Nigeria, noting that sustaining reforms and strengthening market credibility remained priorities.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The development follows reports in 2025 that JP Morgan was considering transforming its Lagos representative office into a fully fledged business branch as part of a broader strategy to expand its presence across Africa.
On October 20, 2026, the American financial institution also deposited N50 billion, equivalent to $38 million, with the CBN.
The proposed merchant bank’s eventual commencement of operations will depend on its fulfilment of the remaining regulatory requirements and the issuance of a final banking licence.
