CBN gives JPMorgan preliminary nod for merchant bank in Nigeria
- The Central Bank has granted JPMorgan an Approval-in-Principle to set up JPMorgan Merchant Bank Nigeria Limited.
- The bank cannot open for business until it meets all requirements and gets a final licence.
- The CBN also approved Adedapo Adedayo Olagunju as managing director and named other board nominees.
JPMorgan, the biggest bank in the United States by assets, has moved a step closer to running a full banking business in Nigeria. The Central Bank of Nigeria (CBN) said on Friday it had given the firm an Approval-in-Principle to set up JPMorgan Merchant Bank Nigeria Limited.
The announcement was made by Michael Akuka, director of the CBN's Corporate Communications and Investor Relations Department. An Approval-in-Principle is only the first stage of licensing. It does not allow the bank to trade yet.
The CBN said the proposed bank must still be registered with the Corporate Affairs Commission and complete other operational and regulatory steps. Only after that can the regulator issue a final licence and let it open.
Why it matters to Nigerians
A merchant bank serves big companies, not everyday savings accounts. It lends to businesses, helps them raise money and handles large deals. JPMorgan already has a representative office in Lagos and plans to turn it into a working branch.
For ordinary Nigerians, the value is indirect: more foreign banks chasing corporate clients can mean more money flowing into Nigerian businesses, and that can support jobs and investment over time. It does not change savings rates or bank charges on its own.
The CBN linked the approval to its recent recapitalisation exercise, which forced banks to raise more capital, and to reforms under Governor Olayemi Cardoso. Cardoso said the aim is a financial system that is "stable, competitive and internationally connected" and can support investment and growth. He added that the CBN is encouraged by rising interest from foreign financial institutions.
JPMorgan had already paid ₦50 billion, about $38 million, to the CBN as its licence application progressed, according to Nairametrics. The firm first signalled plans to apply for a merchant banking licence in April 2025.
Along with the approval, the CBN cleared Adedapo Adedayo Olagunju as managing director of the proposed bank. It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors, and Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.
What happens next: JPMorgan Merchant Bank Nigeria Limited must finish incorporation and other CBN conditions. If it does, the CBN can grant a final licence and the bank can begin operations.