The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services firm JPMorgan to establish a merchant bank in Nigeria, marking a significant step in the lender's entry into the country's financial sector. The proposed institution, to be named JPMorgan Merchant Bank Nigeria Limited, will be led by Adedapo Adedayo Olagunju as managing director, according to a statement from the apex bank.
Regulatory Conditions and Leadership Appointments
The approval-in-principle does not permit the bank to commence operations or accept deposits until it fulfills all outstanding regulatory requirements. These include completing registration with the Corporate Affairs Commission and obtaining a final banking licence from the CBN, as clarified by Michael Akuka, the CBN's Director of Corporate Communications and Investor Relations.
Alongside the initial approval, the CBN has cleared key executive appointments at the proposed merchant bank. Adedapo Adedayo Olagunju has been approved as managing director, while Kevin George, Nzelu Chinedum Izunwanne, and Syed Gabriel Murtaza will serve as non-executive directors. The regulator also approved Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni as independent non-executive directors.
CBN Governor Highlights Global Integration Goals
CBN Governor Olayemi Cardoso said the development aligns with the regulator's efforts to build a stronger and more internationally connected financial system. "Our aim is to have a safe, sound, competitive and globally integrated financial system that engenders trust and can support investment and growth," Cardoso stated.
He added that the CBN welcomed increasing interest from international financial institutions and remained committed to maintaining an open and competitive environment for both domestic and foreign players. The approval was announced by Michael Akuka, who described the move as a sign of growing international interest in Nigeria's financial sector.
Context of Banking Sector Reforms
JPMorgan's planned entry comes as Nigeria pushes ahead with its banking sector recapitalisation programme, which requires lenders to meet higher minimum capital requirements. The policy is intended to strengthen banks' capacity to finance large-scale investments, withstand economic shocks, and support broader economic growth.
The proposed merchant bank could further connect Nigeria's financial system with international capital markets, although its actual impact will depend on its eventual operations and the services it provides. The CBN stressed that approval-in-principle is only the first stage in the licensing process and does not authorise the proposed institution to conduct banking business or accept deposits before receiving final regulatory approval.
The apex bank reiterated its commitment to implementing reforms aimed at deepening Nigeria's links with international capital markets and supporting sustainable economic development. The final licensing decision will determine when JPMorgan Merchant Bank Nigeria Limited can begin full operations in the country.
