The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services giant, JPMorgan, to establish a merchant bank in Nigeria.
The move is expected to deepen the country’s financial markets and strengthen its integration with the international financial system.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, marks a significant development for Nigeria’s financial sector, reflecting growing international interest in the country’s financial markets and long-term economic prospects.
The approval was announced by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department.
According to the apex bank, the development comes amid sustained reforms aimed at strengthening financial stability, restoring market confidence and improving Nigeria’s access to global capital markets.
The approval also follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of Nigerian banks.
READ ALSO: CBN calls for Improved Banking Services
The CBN said the proposed establishment of the merchant bank reflects growing confidence in the reforms being implemented under Governor Olayemi Cardoso, whose administration has prioritised financial stability, market development and the rebuilding of international confidence in Nigeria’s financial system.
Speaking on the Bank’s reform agenda, Cardoso said the objective was to build a financial system that was stable, competitive and internationally connected, 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,” he said.
“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.”
The CBN, however, clarified that the approval-in-principle represents only the initial stage of the regulatory process and does not amount to a final banking licence.
It said JPMorgan Merchant Bank Nigeria Limited would be required to fulfil all applicable regulatory conditions, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it could be authorised to commence business.
The apex bank has approved the nomination of Mr. Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.
It 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 approved as Independent Non-Executive Directors.
The proposed institution can begin operations only after the CBN issues a final banking licence.
The apex bank reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
The proposed entry of JPMorgan into Nigeria’s merchant banking space comes at a time when the country is seeking to attract more international investment, deepen financial intermediation and mobilise capital to support economic expansion.
