CBN Grants JPMorgan Licence to Operate Merchant Bank in Nigeria
The Central Bank of Nigeria (CBN) has granted JPMorgan approval in principle to establish a merchant bank in Nigeria, following the banking sector recapitalisation exercise.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to operate after it meets the remaining regulatory requirements and obtains a final banking licence from the CBN.
The Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, announced the approval in a statement on Friday, October 23.
The statement said the approval reflects growing international interest in Nigeria’s financial markets and follows reforms aimed at strengthening financial stability and restoring confidence in the country’s banking system.
The CBN said the development follows the successful implementation of its banking sector recapitalisation exercise, which it said strengthened the resilience and capacity of Nigerian banks.
The approval also forms part of the broader reforms under CBN Governor Olayemi Cardoso, aimed at deepening financial markets and improving Nigeria’s integration with global capital markets.
Speaking on the reforms, Cardoso said: “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.
“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 apex bank, however, clarified that the approval-in-principle is only the first stage of the regulatory process and does not authorise the proposed bank to commence operations.
It said JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completing the necessary operational and regulatory arrangements, before the bank is issued a final licence.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank. The CBN approved Latter Kevin George, Nzelu Chinedum Izunwanne, and Syed Gabriel Murtaza as the bank’s non-executive directors.
The CBN also approved Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.
The CBN reaffirmed its commitment to maintaining a sound, competitive, and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets. Overnight Rate Rises as Liquidity Dips, NOFR Steadies at 20%
