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The Central Bank of Nigeria (CBN) has granted preliminary approval to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
The approval-in-principle (AIP) marks the first stage of the regulatory process. However, the proposed bank cannot begin operations until it meets all requirements and receives a final licence from the CBN.
The CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, announced the approval. He said it follows ongoing reforms targeted at strengthening financial stability, improving market confidence, and connecting Nigeria’s financial markets more closely with global markets.
The development also follows the successful completion of the banking sector recapitalisation exercise, which has strengthened Nigerian banks‘ capacity and resilience.
It forms part of the wider reform agenda under CBN Governor Olayemi Cardoso. The agenda focuses on financial stability, deeper financial markets and rebuilding international confidence in Nigeria’s financial system.
“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, “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 stressed that the AIP is not a final banking licence. JPMorgan Merchant Bank Nigeria Limited must first meet all regulatory requirements, including registering with the Corporate Affairs Commission and completing necessary operational arrangements.
The CBN has also approved Adedapo Olagunju as managing director of the proposed bank. It approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors. It approved Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni as independent non-executive directors.
The proposed bank can begin operations only after the CBN issues its final licence.
