The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan for the establishment of JPMorgan Merchant Bank Nigeria Limited, bringing the United States financial giant a step closer to expanding its banking operations in Africa’s largest economy.
The development marks a significant milestone in the international bank’s efforts to deepen its presence in Nigeria’s financial services sector, amid ongoing regulatory reforms designed to strengthen financial stability, restore market confidence and enhance the country’s integration with global capital markets.
The approval was announced by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department. However, the proposed merchant bank will not be permitted to commence operations until it fulfils all outstanding regulatory requirements and secures a final banking licence from the apex bank.
Banking Reforms Strengthen Investor Confidence
The CBN said the preliminary approval followed the successful implementation of Nigeria’s banking sector recapitalisation exercise, which was introduced to improve the resilience, capacity and overall stability of the financial system.
The move also aligns with the broader reform agenda of CBN Governor Olayemi Cardoso, whose administration has prioritised financial stability, deeper capital markets and renewed confidence among domestic and international investors.
Cardoso said the apex bank was committed to developing a financial system capable of supporting investment, stimulating economic growth and attracting greater participation from international financial 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 sustain its reform efforts, strengthen the credibility of Nigeria’s financial markets and create an environment in which both local and foreign financial institutions could participate and expand their operations.
The proposed entry of JPMorgan’s merchant banking business comes at a time when Nigeria is seeking to reinforce the capacity of its financial sector to support businesses, facilitate investment and improve access to international financial markets.
CBN Approves Management and Board Appointments
Alongside the Approval-in-Principle, 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.
In addition, Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The appointments form part of the proposed institution’s governance structure as it progresses towards meeting the requirements for full regulatory authorisation.
Nevertheless, the AIP represents only the initial stage of the licensing process and does not confer permission to commence banking operations.
Before the proposed merchant bank can begin business, it must satisfy the CBN’s applicable conditions, including incorporation with the Corporate Affairs Commission and the completion of necessary operational arrangements.
The final licence will be issued only after the regulator is satisfied that the institution has fulfilled the outstanding requirements.
The CBN maintained that the licensing process reflects its commitment to preserving a sound, competitive and internationally connected financial system while ensuring that new entrants meet the necessary regulatory standards.
JPMorgan Advances Long-Term Nigeria Expansion Strategy
The latest approval follows earlier moves by JPMorgan Chase & Co., the largest bank in the United States by assets, to establish a merchant banking presence in Nigeria.
BrandIconImage reported on October 20, 2026, that the financial institution had deposited N50 billion, equivalent to approximately $38 million, with the CBN as its application for a merchant banking licence progressed.
Under the expansion plan, JPMorgan intends to transform its longstanding Lagos representative office into a fully operational business branch, enabling it to broaden the range of services available to Nigerian corporate clients.
The development builds on the bank’s earlier efforts to expand its footprint across the African financial market. In April 2025, BrandIconImage reported that JPMorgan was preparing to apply for a merchant banking licence as part of its broader strategy to strengthen its presence on the continent.
The proposed merchant bank is expected to provide JPMorgan with a more extensive platform for engaging with Nigerian businesses and participating in the country’s financial services market, subject to the scope of its eventual licence.
For Nigeria, the move represents another indication of international financial institutions’ interest in the country’s banking sector as regulatory authorities pursue reforms aimed at improving institutional resilience and investor confidence.
However, the approval does not mean that JPMorgan Merchant Bank Nigeria Limited is ready to begin operations. The institution must first meet the CBN’s remaining licensing conditions before receiving final authorisation.
Until then, the Approval-in-Principle remains an important but preliminary step in JPMorgan’s plans to establish a fully operational merchant banking business in Nigeria.