The Central Bank of Nigeria (CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in Nigeria, marking a new step in the American financial giant’s expansion plans.
The proposed lender, JP Morgan Merchant Bank Nigeria Limited, must obtain a final banking licence from the apex bank before commencing operations.
In a statement on Friday, the CBN said the approval reflects growing international interest in Nigeria’s financial markets and economic prospects.
According to Michael Akuka, director of the CBN’s Corporate Communications and Investor Relations Department, the development comes amid ongoing reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
The regulator added that the approval follows the completion of the banking sector recapitalisation exercise, which it said had strengthened the resilience and capacity of the Nigerian banking system.
The CBN stressed that approval-in-principle is only the first stage of the regulatory process and does not constitute a final banking licence.
“JP Morgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and the completion of necessary operational and regulatory arrangements, before it can be authorised to commence business,” the bank added.
Cardoso speaks on JP Morgan’s expansion
CBN Governor Olayemi Cardoso said the bank’s objective was to build a stable, competitive and internationally connected 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.
“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.”
CBN approves directors for proposed bank
The apex bank 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.
Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The CBN reiterated that the proposed lender can only begin operations after securing a final banking licence.
It also 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.
JP Morgan’s expansion plans in Nigeria
In 2025, reports indicated that JP Morgan planned to transform 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, the American banking giant deposited N50 billion ($38 million) with the CBN, according to Bloomberg.
The latest approval-in-principle marks another development in the bank’s planned expansion in Nigeria, although it must satisfy the regulator’s outstanding requirements before commencing merchant banking operations.
