CBN gives JPMorgan first approval for merchant bank for Naija
- Di Central Bank don give JPMorgan Approval-in-Principle to set up JPMorgan Merchant Bank Nigeria Limited.
- Di bank no fit open for business until e meet all requirements and get final licence.
- CBN also approve Adedapo Adedayo Olagunju as managing director and name oda board nominees.
JPMorgan, di biggest bank for United States by assets, don move one step closer to running full banking business for Naija. Di Central Bank of Nigeria (CBN) tok on Friday say e don give di firm Approval-in-Principle to set up JPMorgan Merchant Bank Nigeria Limited.
Michael Akuka, director of CBN's Corporate Communications and Investor Relations Department, announce am. Approval-in-Principle na only first stage of licensing. E no allow di bank to trade yet.
CBN tok say di proposed bank still must register with Corporate Affairs Commission and complete oda operational and regulatory steps. Only after that di regulator fit issue final licence and let am open.
Why e matter to Nigerians
Merchant bank dey serve big companies, no be everyday savings accounts. E dey lend to businesses, help dem raise money and handle big deals. JPMorgan already get representative office for Lagos and e plan to turn am into working branch.
For ordinary Nigerians, di value na indirect: more foreign banks wey dey chase corporate clients fit mean more money dey flow into Nigerian businesses, and that fit support jobs and investment over time. E no change savings rates or bank charges on im own.
CBN link di approval to im recent recapitalisation exercise wey force banks to raise more capital, and to reforms under Governor Olayemi Cardoso. Cardoso tok say di aim na financial system wey "stable, competitive and internationally connected" and fit support investment and growth. He add say CBN dey encouraged by rising interest from foreign financial institutions.
JPMorgan don already pay ₦50 billion, about $38 million, to CBN as im licence application progress, according to Nairametrics. Di firm first signal plans to apply for merchant banking licence in April 2025.
Along with di approval, CBN clear Adedapo Adedayo Olagunju as managing director of di proposed bank. E also approve 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.
Wetin happen next: JPMorgan Merchant Bank Nigeria Limited must finish incorporation and oda CBN conditions. If e do, CBN fit grant final licence and di bank fit begin operations.
