CBN Grants JPMorgan Preliminary Approval for Merchant Bank

The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a step forward in the American financial institution’s plans to expand its operations in the country.

The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, will focus on wholesale banking, capital markets and advisory services, according to the CBN.

The approval was announced on Friday by Michael Akuka, the bank’s Director of Corporate Communications and Investor Relations.

The CBN said the decision followed the implementation of its banking sector recapitalisation programme and other reforms aimed at strengthening financial stability, improving investor confidence and deepening Nigeria’s integration with global capital markets.

However, the approval-in-principle does not constitute a final banking licence and does not authorise the proposed institution to commence operations.

JPMorgan Merchant Bank Nigeria Limited must fulfil outstanding regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational arrangements, before the CBN can issue its final licence.

The apex bank also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank.

Other approved appointments include Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

The proposed establishment comes as the CBN pursues reforms to strengthen the banking sector, improve market credibility and attract greater participation from international financial institutions.

CBN Governor Olayemi Cardoso said the regulator’s objective was to build a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.

JPMorgan, one of the world’s largest financial institutions, already has a longstanding presence in Nigeria through its representative office in Lagos.

The proposed merchant bank would expand its institutional banking presence and potentially increase access to specialised financial services for Nigerian businesses and other institutional clients.

The CBN said the proposed institution would be permitted to begin operations only after meeting all applicable regulatory conditions and receiving a final banking licence.