CBN Approves JPMorgan’s Proposed Merchant Bank in Nigeria

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan to establish a merchant bank in Nigeria, marking a potential expansion of the global financial institution’s operations in the country.

The proposed institution, JPMorgan Merchant Bank Nigeria Limited, will be required to meet all applicable regulatory conditions before it can obtain a final banking licence and commence operations.

Earlier, it was reported that the prospective lender had paid the apex bank $38 million, equivalent to N50 billion, for the licence.

The CBN’s Director of Corporate Communications and Investor Relations, Mr Michael Akuka, announced the approval, noting that the development comes amid reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.

According to the apex bank, the approval follows the implementation of the banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of the Nigerian banking system.

The development also aligns with the CBN’s broader reform agenda under Governor Yemi Cardoso, which focuses on strengthening financial stability, deepening financial markets and rebuilding international confidence in the country’s financial system.

Commenting on the reforms, Mr Cardoso said the bank’s objective was to build a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.

The CBN clarified that the approval-in-principle represents the first stage of the regulatory process and does not amount to a final banking licence.

The proposed bank must complete its incorporation with the Corporate Affairs Commission and fulfil the necessary operational and regulatory requirements before receiving authorisation to begin business.

The apex bank also approved the nomination of Mr Dapo Adedayo Olagunju as managing director of the proposed institution.

It further approved Mr Latter Kevin George, Mr Nzelu Chinedum Izunwanne and Mr Syed Gabriel Murtaza as non-executive directors, while Mrs Alade Sarah Omotunde, Mr Ajayi Olukonyinsola and Mr Adetu Seni were approved as independent non-executive directors.

The CBN reaffirmed its commitment to maintaining a sound and competitive financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.