J.P. Morgan, one of the world's leading financial services companies, has announced plans to establish a merchant bank in Nigeria, with operations targeted to begin before the end of 2026. The proposed launch is subject to regulatory approval and would expand the US firm's presence in Nigeria's financial services sector.
Dapo Olagunji, managing director of J.P. Morgan West Africa, announced the development at the Nigeria–Asia Financial Connectivity Dialogue in Singapore. The event was organised by the Central Bank of Nigeria (CBN) in collaboration with J.P. Morgan, Nigerian Exchange Group (NGX) and FMDQ Group.
Strengthening Ties with Nigerian Businesses and Capital Markets
According to information shared at the event, the proposed bank would strengthen J.P. Morgan's connections with Nigerian businesses and the country's capital markets, as reported by BusinessDay. Olagunji announced the plan while welcoming participants to the dialogue, which brought together investors, financial institutions, businesses and Nigerians living and working across Asia.
The proposed entry comes as Nigeria seeks to attract more international capital and deepen relationships between its domestic financial markets and global investors. J.P. Morgan already has an established presence in Nigeria, providing financial services to clients through its asset and wealth management and commercial and investment banking businesses.
Expansion Plans and Prior Engagements
The company's expansion plans could create a stronger platform for engaging with Nigerian businesses and institutions, although the proposed merchant bank must first secure the necessary regulatory approvals. The development also follows earlier engagements between the company and Nigerian government officials over investment opportunities.
In January 2025, a delegation led by Olagunji met with Wale Edun, who was then the Minister of Finance and Coordinating Minister of the Economy, in Abuja to discuss investment prospects.
CBN Governor's Engagements in Singapore
The announcement came during CBN Governor Olayemi Cardoso's engagements in Singapore, ahead of the IMF–World Bank Annual Meetings in Bangkok. Cardoso's programme included discussions with the Monetary Authority of Singapore (MAS) and the signing of a memorandum of understanding with the Global Finance & Technology Network (GFTN).
The agreement between the CBN and GFTN establishes a framework for cooperation on financial innovation and stronger links between institutions in Nigeria and Singapore. Nairametrics reports that during discussions with MAS, both sides explored financial sector development, regulation, market connectivity and innovation.
Cardoso said Nigeria's financial reforms were intended to support deeper, more liquid and internationally connected markets. He also stressed the importance of credible monetary policy, stronger governance, transparent market operations and predictable regulations in attracting long-term investment.
Broader Efforts to Expand International Partnerships
The CBN's engagement with Asian financial institutions forms part of broader efforts to expand international partnerships and create additional opportunities for investment, trade and financial innovation. J.P. Morgan's planned merchant banking operations would add another dimension to Nigeria's efforts to strengthen its links with international financial institutions, subject to the completion of the regulatory process.
Related Development: Paystack Microfinance Bank
In a related development, Legit.ng reported that Paystack, a Nigerian fintech company, marked its 10th anniversary with the launch of a new subsidiary, Paystack Microfinance Bank (MFB), after acquiring Ladder Microfinance Bank. Founded in Nigeria a decade ago to simplify how businesses get paid, Paystack has grown from a single payments product into a platform operating across five African countries.
