CBN grants JPMorgan approval to establish Merchant Bank in Nigeria

The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking another step in the country’s efforts to deepen its financial sector and attract global investment.

The approval was announced by the Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, in a statement issued on Friday, October 23.

According to the apex bank, the proposed institution, JPMorgan Merchant Bank Nigeria Limited, will commence operations only after meeting all outstanding regulatory conditions and obtaining a final banking licence from the CBN.

The bank said the approval underscores increasing confidence among international financial institutions in Nigeria’s financial markets and follows reforms introduced to strengthen financial stability and enhance the resilience of the banking sector.

The CBN noted that the development comes on the heels of the successful banking sector recapitalisation exercise, which it said has improved the capacity and stability of Nigerian banks.

It added that the approval aligns with ongoing reforms under CBN Governor Olayemi Cardoso aimed at deepening Nigeria’s financial markets and strengthening the country’s integration into the global financial system.

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.”

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The CBN, however, stressed that the approval-in-principle does not permit the proposed bank to begin operations.

It said JPMorgan Merchant Bank Nigeria Limited must first satisfy all statutory and regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and completion of operational and compliance processes, before a final banking licence can be issued.

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

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

The CBN reaffirmed its commitment to building a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s role in global capital markets.