The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services firm JPMorgan to establish a merchant bank in Nigeria, in a move expected to strengthen international participation in the country’s financial markets.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, is expected to operate upon fulfilment of the applicable regulatory requirements and the issuance of a final banking licence by the apex bank.
The CBN disclosed the development in a statement issued by Michael Akuka, Director of Corporate Communications and Investor Relations.
According to the statement, the approval reflects growing international interest in Nigeria’s financial sector and its long-term economic prospects, amid ongoing reforms aimed at strengthening financial stability and restoring investor confidence.
The development also follows the successful implementation of the banking sector recapitalisation exercise, which the CBN said had strengthened the resilience and capacity of the Nigerian banking system.
The proposed establishment of the merchant bank comes as the apex bank intensifies efforts to deepen Nigeria’s financial markets and strengthen the country’s integration into the global financial system under Governor Olayemi Cardoso.
Commenting on the development, Cardoso said the CBN remained committed to building a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.
“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 apex bank was encouraged by the growing interest of international financial institutions in Nigeria.
“Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive,” Cardoso said.
The CBN, however, clarified that the approval-in-principle represents only the first stage of the regulatory approval process and does not amount to a final banking licence.
It explained that JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it can commence business.
The apex bank also announced the approval of key appointments for the proposed institution.
Mr Adedapo Adedayo Olagunju was approved as Managing Director, while Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as Non-Executive Directors.
Similarly, Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni received approval to serve as Independent Non-Executive Directors.
The CBN stressed that the proposed bank would be permitted to commence operations only after the issuance of a final banking licence.
It reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
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