CBN Approves JPMorgan’s Plan to Establish Merchant Bank in Nigeria
The preliminary approval allows the US financial giant to advance its Nigerian expansion plans, but it must meet outstanding regulatory requirements before commencing operations.
ABUJA, Nigeria: The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a significant step in the American financial institution’s plans to expand its presence in the country.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, will operate under Nigeria’s regulatory framework and will be required to obtain a final banking licence before commencing business.
The CBN announced the development on Friday, October 23, 2026, through Michael Akuka, Director of its Corporate Communications and Investor Relations Department.
CBN Says Approval Reflects Growing Investor Interest
According to the apex bank, the approval comes amid ongoing reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with international capital markets.
The development also follows the implementation of the banking sector recapitalisation programme, which seeks to strengthen the capacity and resilience of financial institutions operating in the country.
CBN Governor Olayemi Cardoso said the regulator remained committed to building a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.
He added that the growing interest of international financial institutions in Nigeria highlighted the importance of sustaining reforms, strengthening market credibility and creating an environment where domestic and foreign institutions can operate.
JPMorgan Must Obtain Final Banking Licence
The CBN clarified that approval-in-principle represents only the first stage of the regulatory licensing process. It does not authorise JPMorgan Merchant Bank Nigeria Limited to begin banking operations.
Before receiving final approval, the proposed institution must fulfil the applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and completion of the necessary operational and regulatory arrangements.
The regulator also emphasised that the bank can commence business only after the final licence has been issued.
The CBN has approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed institution. It also approved nominees to serve on the bank’s board, including non-executive and independent non-executive directors.
JPMorgan Expands Its Nigerian Ambitions
JPMorgan, one of the world’s largest financial services groups, already maintains a presence in Nigeria through its Lagos representative office, which serves corporate and institutional clients.
The proposed merchant bank would provide the group with a locally licensed platform to expand its institutional banking activities, subject to the scope of its final authorisation.
Merchant banks generally provide specialised services such as corporate finance, capital raising, financial advisory services and support for large-scale business transactions.
The approval follows reports that JPMorgan deposited approximately $38 million, equivalent to N50 billion, with the CBN as part of its licensing process. The amount corresponds to the minimum capital requirement reported for a nationally authorised merchant bank.
What the Approval Means for Nigeria’s Financial Sector
JPMorgan’s proposed entry could increase competition in Nigeria’s merchant banking market and create additional options for eligible corporate clients seeking financing, capital market access and financial advisory services.
It also comes as Nigerian authorities pursue reforms designed to strengthen the banking system and attract international investment.
However, the practical impact will depend on the institution’s final licence, approved activities and commencement of operations.
For now, the approval-in-principle represents progress in JPMorgan’s plans to establish a merchant banking subsidiary in Nigeria. The company must still complete the remaining regulatory steps before it can begin business.
