By Emmanuella Opara | October 25th 2026
KEY POINTS
- The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in the country.
- The proposed institution, JPMorgan Merchant Bank Nigeria Limited, must meet regulatory requirements and obtain a final licence before commencing operations.
- The CBN has approved Adedapo Olagunju as the proposed managing director, alongside six non-executive and independent non-executive directors.
- The approval follows Nigeria’s banking sector recapitalisation programme and other reforms aimed at strengthening financial stability and attracting investment.
MAIN STORY
The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, paving the way for the American financial institution to expand its presence in the country’s financial sector.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, will be required to complete the remaining regulatory procedures and obtain a final banking licence before it can begin operations.
The CBN announced the approval in a statement issued on Friday by Michael Akuka, Director of its Corporate Communications and Investor Relations Department.
“The Central Bank of Nigeria has granted Approval-in-Principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited,” the statement said.
According to the apex bank, the development follows the implementation of its banking sector recapitalisation programme and other reforms designed to strengthen financial stability, improve market confidence and deepen Nigeria’s connection to global capital markets.
JPMorgan operates across investment banking, commercial banking, asset management and other financial services. Its proposed Nigerian merchant bank would expand its institutional presence in the country, with a focus on specialised financial services rather than conventional retail banking.
Merchant banks typically provide corporate finance, investment banking, capital-raising and advisory services to businesses and other institutional clients.
The CBN clarified that approval-in-principle is only an initial stage in the licensing process. JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and satisfy applicable operational and regulatory conditions before receiving final authorisation.
The proposed bank cannot commence operations until the CBN issues the required final licence.
CBN Governor Olayemi Cardoso said the regulator’s reform agenda was intended to create a financial system capable of attracting investment and supporting 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 said.
He added that interest from international financial institutions reflected the importance of sustaining reforms and strengthening confidence in Nigeria’s financial markets.
The CBN also approved Adedapo Olagunju as the proposed bank’s managing director.
Other appointments approved by the regulator include Latter George, Nzelu Izunwanne and Syed Murtaza as non-executive directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The approval follows an earlier report that JPMorgan Chase & Co deposited N50bn with the CBN as part of its efforts to secure a merchant banking licence and expand its operations in Nigeria.
The deposit, valued at approximately $38m, reportedly met a key requirement in the application process and indicated the institution’s preparations to establish a licensed banking operation in the country.
THE ISSUES
The proposed entry of JPMorgan into Nigeria’s merchant banking market comes as the CBN pursues reforms intended to strengthen banks and improve confidence in the financial system.
Merchant banking services can support corporate financing, capital raising and investment advisory activities. However, the approval-in-principle does not mean JPMorgan is already licensed to operate in Nigeria. The institution must still meet the regulator’s outstanding requirements before beginning business.
WHAT’S BEING 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,” Olayemi Cardoso, Governor of the Central Bank of Nigeria, said.
WHAT’S NEXT
JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and fulfil the CBN’s regulatory and operational requirements before a final banking licence can be issued. The bank’s commencement of operations will depend on securing that authorisation.
BOTTOM LINE
The CBN’s preliminary approval marks a step towards JPMorgan establishing a merchant bank in Nigeria. The proposed institution could broaden the range of specialised financial services available to businesses, but it cannot begin operations until it obtains the regulator’s final licence.
