CBN grants JPMorgan AIP for Nigeria merchant bank

The Central Bank of Nigeria (CBN) has granted JPMorgan Approval-in-Principle to establish a merchant bank in the country, to be known as JPMorgan Merchant Bank Nigeria Limited. The authorisation marks the first stage of the licensing process and does not yet constitute a final banking licence. Under the terms of the approval, the proposed institution will only be allowed to commence operations once it has fulfilled all regulatory conditions and the CBN has issued a final operating licence.

The new entity is intended to expand JPMorgan’s institutional presence in Nigeria through a merchant banking platform rather than conventional retail banking. Merchant banks in Nigeria are focused on specialised services such as corporate finance, investment banking, capital raising and advisory services. The proposed bank will therefore be positioned in the corporate, investment banking and capital markets segments once fully licensed.

The CBN has stressed that the Approval-in-Principle is only the first phase of its authorisation process. JPMorgan Merchant Bank Nigeria Limited must complete incorporation with the Corporate Affairs Commission and satisfy all applicable operational and regulatory requirements before it can receive a final licence. Only after the apex bank issues this final authorisation will the institution be permitted to commence business.

As part of the licensing conditions, JPMorgan Chase & Co. previously deposited N50 billion with the CBN, described as equivalent to about $38 million. The payment met a key capital requirement for a nationally licensed merchant bank under the CBN’s recapitalisation framework and was one of the final regulatory steps in the application process. The deposit signalled JPMorgan’s readiness to establish a licensed merchant banking operation in Nigeria, although it did not guarantee approval.

Alongside the Approval-in-Principle, the CBN has cleared a slate of senior appointments for the proposed merchant bank. Adedapo Adedayo Olagunju has been approved as Managing Director of JPMorgan Merchant Bank Nigeria Limited. His nomination forms part of efforts to ensure the institution meets regulatory and governance requirements ahead of potential commencement of operations.

The CBN has also approved several non-executive and independent non-executive directors. George, Nzelu Izunwanne and Syed Murtaza have been named as Non-Executive Directors.

The decision to grant JPMorgan Approval-in-Principle follows the completion of a banking sector recapitalisation exercise that has strengthened the resilience and capacity of Nigerian banks. The CBN has framed the move as consistent with a broader reform agenda under Governor Olayemi Cardoso aimed at reinforcing financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.

Officials have highlighted growing interest from international financial institutions in Nigeria’s financial system and reiterated a commitment to maintaining a competitive and internationally connected banking sector. The central bank has stated that its focus remains on sustaining reforms, strengthening the credibility of local financial markets and creating an environment in which both domestic and international institutions can participate effectively.