By Stella Odueme
The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to global financial institution JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
The approval marks a significant development in Nigeria’s financial sector, reflecting growing international interest in the country’s financial markets and economic prospects.
The CBN Director of Corporate Communications and Investor Relations, Michael Akuka, announced the development, attributing it to ongoing reforms aimed at strengthening financial stability, restoring investor confidence and deepening Nigeria’s integration into global capital markets.
He said the approval followed the successful completion of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.
The development also aligns with the broader reform agenda of the CBN Governor, Olayemi Cardoso, which focuses on financial stability, deeper financial markets and renewed international confidence in Nigeria’s financial system.
Cardoso said the apex bank remained committed to building a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.
“We are 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,” the governor said.
Akuka, however, clarified that the Approval-in-Principle represents only the initial stage of the regulatory process and does not amount to a final banking licence.
He explained that JPMorgan Merchant Bank Nigeria Limited must satisfy all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it can be authorised to commence business.
The CBN has approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.
It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors.
Similarly, Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors.
The apex bank stressed that the proposed institution could begin operations only after the issuance of a final banking licence.
The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and strengthens Nigeria’s participation in global financial markets.