The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish a merchant bank in the country, paving the way for the American financial services giant to expand its institutional banking operations in Nigeria.
The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, will be required to meet regulatory conditions and secure a final banking licence from the apex bank before commencing operations.
Announcing the approval in a statement on Friday, the CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, said the development reflected growing international interest in Nigeria’s financial sector.
The statement said, “The Central Bank of Nigeria has granted Approval-in-Principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.”
The CBN said the approval followed the implementation of its banking sector recapitalisation programme and other reforms aimed at strengthening financial stability, boosting market confidence and deepening Nigeria’s integration into global capital markets.
JPMorgan is one of the world’s largest financial institutions, with business interests spanning investment banking, commercial banking, asset management and other financial services.
The proposed merchant bank would strengthen the American financial giant’s institutional presence in Nigeria. However, the approval-in-principle does not permit the bank to commence operations until it meets the regulatory requirements and secures a final licence from the CBN.
Merchant banks specialise in financial services such as corporate finance, investment banking, capital raising and advisory services, rather than traditional retail banking.
The CBN clarified that the approval-in-principle marked only the initial stage of its regulatory authorisation process.
According to Akuka, JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and meet all applicable regulatory and operational requirements before obtaining a final banking licence.
He stressed that the proposed bank would be permitted to commence operations only after securing the CBN’s final approval.
CBN Governor Olayemi Cardoso said the bank’s reform agenda was designed to build a financial system capable of attracting investment and driving 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,” Cardoso said.
He added that the interest from international financial institutions underscored the need to sustain reforms and strengthen investor confidence in Nigeria’s financial markets.
