The Central Bank of Nigeria (CBN) has granted JPMorgan approval in principle to establish a merchant bank in Nigeria, in a move expected to deepen the country’s financial markets and strengthen its integration with the global financial system.
The approval, announced on Friday by the Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, follows the banking sector recapitalisation exercise introduced to strengthen the resilience and capacity of Nigerian banks.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to commence operations after fulfilling the remaining regulatory requirements and obtaining a final banking licence from the apex bank.
According to the CBN, the approval reflects growing international interest in Nigeria’s financial markets and the impact of reforms aimed at improving financial stability and restoring confidence in the banking system.
The development also forms part of broader financial sector reforms under the leadership of CBN Governor Olayemi Cardoso, aimed at deepening financial markets and expanding Nigeria’s participation in global capital markets.
Speaking on the reforms, Cardoso said the apex bank was committed to building a financial system capable of attracting investment and supporting sustainable 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.
He added that the growing interest of international financial institutions in Nigeria was encouraging, noting that the CBN would continue to strengthen market credibility and create an environment in which domestic and international institutions could operate effectively.
However, the apex bank clarified that the approval in principle did not authorise JPMorgan Merchant Bank Nigeria Limited to commence operations, stressing that the institution must satisfy all applicable regulatory conditions before receiving its final licence.
These requirements include incorporation with the Corporate Affairs Commission (CAC) and the completion of necessary operational and regulatory arrangements.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
Other appointments approved by the apex bank include Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as independent non-executive directors.
The proposed entry of JPMorgan into Nigeria’s merchant banking sector comes amid efforts by the CBN to strengthen the financial system, attract foreign investment and position Nigerian financial institutions to compete more effectively in international markets.
The apex bank reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth.
