CBN grants JPMorgan approval-in-principle to establish merchant bank

By Babajide Komolafe The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited. The proposed establishment of a merchant bank by one of the world’s leading financial institutions marks a significant development for Nigeria’s financial sector, reflecting growing international interest in the country’s financial markets and long-term economic prospects.

Announcing the approval, Michael Akuka, Director of the Corporate Communications and Investor Relations Department at the CBN, said the development comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets. The approval follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.

The development comes against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system. Speaking on the Bank’s broader reform priorities, Governor Cardoso said: “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.

“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.” Akuka clarified that the AIP represents the first stage of the regulatory approval process and does not constitute a final banking licence.

JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before receiving authorisation to commence business. The CBN has approved the nomination of Mr Adedapo Adedayo Olagunju as Managing Director of the proposed bank.

The Bank also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as Independent Non-Executive Directors. The proposed bank may commence operations only upon the CBN issuing a final licence. The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.