CBN clears five Nigerians for JPMorgan's first African merchant bank
- JPMorgan has won approval in principle from the CBN to set up a merchant bank in Nigeria.
- Five Nigerians, including former acting CBN governor Sarah Alade, are among seven board nominees cleared.
- The bank deposited ₦50 billion to meet the capital rule but still needs a final licence.
JPMorgan Chase has moved closer to running a fully licensed bank in Nigeria after the Central Bank of Nigeria (CBN) granted approval in principle for a merchant banking subsidiary, JPMorgan Merchant Bank Nigeria Limited.
The CBN also cleared seven board nominees, five of them Nigerians. The approval in principle is not a final licence, so the bank cannot start operations yet.
The American banking group deposited ₦50 billion, about $38 million, with the CBN to meet the minimum capital requirement for a nationally licensed merchant bank, according to BusinessDay and Legit.ng.
Who is on the board
Dapo Olagunju, who has led JPMorgan's West African business since 2018, is the proposed managing director. Before JPMorgan, he spent years at Access Bank as group treasurer and head of global markets, and earlier worked at IBTC, now part of Stanbic IBTC.
Chi Nzelu, JPMorgan's global head of macro electronic trading, is a non-executive director. He joined the bank in London in 2005 and became a managing director in 2016.
Sarah Alade, an independent non-executive director, was CBN deputy governor from 2007 to 2017 and acted as governor in 2014. She later served as special adviser to the president on finance and the economy.
Konyin Ajayi, a partner at Olaniwun Ajayi LP, is also an independent non-executive director. His work includes Airtel Africa's $750 million dual listing in the UK and Nigeria and Seplat's acquisition of Eland Oil and Gas.
Seni Adetu, the fifth Nigerian, is an independent non-executive director. He was managing director and chief executive of Guinness Nigeria and chief executive of East African Breweries, and held senior roles at Coca-Cola and Diageo.
The CBN did not say which board committees each director will sit on.
Why it matters
JPMorgan has operated in Nigeria mainly through a Lagos representative office. A merchant bank licence would let it serve Nigerian corporations and institutional clients more directly, offering corporate finance, structured financing, treasury services and capital market solutions.
That could widen access to international capital for large Nigerian businesses at a time the CBN is pushing reforms to steady the financial system and draw back investors.
It may also sharpen competition for skilled banking staff, as global firms look to Nigeria.
What happens next
JPMorgan must meet the remaining regulatory and operational requirements before the CBN issues a final licence. The bank had said it hoped to start operations before the end of 2026, subject to clearance.
