The Central Bank of Nigeria, CBN, approves JPMorgan Merchant Bank licence request in-principle for the USA bank to establish a merchant bank in Nigeria, advancing its institution’s plans to expand its operations in Africa’s largest economy.
The proposed lender, JPMorgan Merchant Bank Nigeria Limited, will be able to commence operations only after meeting the CBN’s regulatory requirements and securing a final banking licence.
The approval was announced by Michael Akuka, director of the CBN’s Corporate Communications and Investor Relations Department, as Nigeria continues to implement reforms aimed at strengthening financial stability, improving investor confidence and deepening its capital markets.
The development marks a further step in JPMorgan Chase & Co.’s efforts to establish a formal merchant banking presence in Nigeria, building on its longstanding representative office in Lagos.
CBN Approves JPMorgan Merchant Bank
The CBN said the approval followed the implementation of Nigeria’s banking sector recapitalisation exercise, which was designed to strengthen banks’ financial capacity and improve the resilience of the financial system.
The move also aligns with the central bank’s broader reform agenda under Governor Olayemi Cardoso, which focuses on financial stability, stronger market credibility and greater integration with international financial markets.
Cardoso said the regulator was working to build a financial system capable of supporting investment and economic growth while attracting greater participation from domestic and international institutions.
“Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth,” he said.
He added that the CBN would continue implementing reforms to strengthen market confidence and create an environment in which financial institutions could operate and expand.
CBN Approves Management and Board Appointments
Alongside the preliminary banking approval, the CBN approved the nomination of Adedapo Adedayo Olagunju as managing director of JPMorgan Merchant Bank Nigeria Limited.
The regulator also approved the appointments of Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The appointments form part of the proposed bank’s governance structure as it progresses towards meeting the requirements for a full banking licence.
An approval-in-principle does not authorise a financial institution to begin banking operations. JPMorgan Merchant Bank Nigeria Limited must satisfy the CBN’s outstanding conditions, complete the necessary incorporation and operational arrangements, and obtain a final licence before commencing business.
JPMorgan’s N50 Billion Deposit Advances Licence Bid
The latest development follows earlier steps by JPMorgan Chase & Co., the largest US bank by assets, to establish a merchant banking operation in Nigeria.
JPMorgan reportedly deposited N50 billion, equivalent to about $38 million at the time, with the CBN in October 2026 as part of its application process for a merchant banking licence.
The proposed Nigerian bank is expected to build on JPMorgan’s existing presence in Lagos and expand the range of financial services available to Nigerian corporate clients.
In April 2025, reports indicated that the US banking group was preparing to seek a merchant banking licence as part of its broader strategy to strengthen its presence in Africa.
The latest approval-in-principle moves that process forward, although the proposed institution must still meet the regulator’s remaining requirements before it can begin operations.
What JPMorgan’s Entry Could Mean for Nigeria’s Financial Sector
JPMorgan’s proposed merchant bank could deepen competition in Nigeria’s corporate financial services market and strengthen links between local businesses and international capital markets.
Merchant banks typically provide services such as corporate finance, capital raising, investment advisory, structured financing and other specialised financial solutions, subject to their licences and regulatory permissions.
For Nigerian businesses, a fully licensed JPMorgan merchant bank could broaden access to international financial expertise and financing options. Its eventual impact, however, will depend on the services it is authorised to provide, its operating strategy and demand from corporate clients.
The development also comes as Nigerian authorities seek to strengthen the banking system’s capacity to support investment, trade and economic growth.
For now, JPMorgan Merchant Bank Nigeria Limited remains subject to the CBN’s licensing process. The institution can begin operations only after receiving final regulatory approval.
