CBN Grants JPMorgan Approval-in-Principle to Establish Merchant Bank in Nigeria

ABUJA, Nigeria - October 24, 2026

The proposed bank is expected to expand JPMorgan’s institutional presence in Nigeria, with operations subject to final regulatory approval.

The Central Bank of Nigeria (CBN) has granted American financial services giant JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a new step in the institution’s plans to expand its presence in the country’s financial services industry.

The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, is expected to focus on wholesale banking, capital markets and advisory services, according to a report by Reuters. However, the preliminary approval does not authorize the bank to commence operations. It must first satisfy outstanding regulatory requirements and obtain a final banking license from the CBN.

The approval was announced on Friday, October 23, by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department. The development comes amid efforts by Nigerian authorities to strengthen financial stability, improve investor confidence and deepen the country’s integration with international capital markets.

CBN Outlines Conditions for Final License

The apex bank clarified that the approval-in-principle represents the initial stage of its licensing process rather than a final authorization to operate.

Before commencing business, JPMorgan Merchant Bank Nigeria Limited must fulfil the applicable regulatory conditions, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements.

The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed institution.

Other approved appointments include Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.

Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

These appointments form part of the proposed bank’s preparations to meet the regulatory and corporate governance requirements for establishing its Nigerian operations.

JPMorgan’s Entry and Nigeria’s Financial Sector Reforms

The development comes as Nigeria continues to pursue reforms intended to strengthen its banking system and attract international investment.

The CBN has linked the approval to the broader objectives of its banking sector recapitalization programme and efforts to improve the resilience and capacity of financial institutions operating in the country.

CBN Governor Olayemi Cardoso said the regulator’s objective was to establish a financial system that could attract investment, support economic growth and maintain stronger connections with international markets.

The proposed establishment of JPMorgan Merchant Bank Nigeria Limited could expand the range of financial services available to Nigerian businesses and institutional clients, particularly in areas such as corporate finance, capital raising and financial advisory services.

However, the actual impact will depend on the bank’s eventual operating structure, the services it offers and the scale of its participation in the Nigerian market.

What Is a Merchant Bank?

Unlike conventional commercial banks, which typically provide everyday services such as savings accounts, personal loans and payment facilities, merchant banks primarily serve businesses, corporations, governments and institutional investors.

Their services may include arranging financing, advising companies on mergers and acquisitions, facilitating capital-market transactions and supporting large-scale investment projects.

If its proposed Nigerian operations proceed, JPMorgan could offer additional options for businesses seeking sophisticated financial services and access to international capital markets.

Such services may be particularly relevant to companies pursuing expansion, infrastructure development or cross-border transactions.

Nevertheless, the proposed bank’s specific product offerings and operational timeline have not been confirmed in the reports announcing the preliminary approval.

Implications for Investors and Nigerian Businesses

JPMorgan’s proposed entry comes at a time when Nigerian authorities are seeking to strengthen confidence in the financial system and encourage greater foreign investment.

For Nigerian businesses, a new merchant banking institution could potentially broaden access to corporate financial advisory services, international financing networks and capital-market expertise.

For the wider financial sector, its entry could increase competition in specialized institutional banking and encourage existing providers to strengthen their services.

The development may also attract attention from international investors monitoring Nigeria’s financial reforms and its efforts to improve participation in global markets.

However, approval-in-principle should not be interpreted as evidence that foreign investment will automatically increase or that financing costs for Nigerian businesses will immediately decline. Those outcomes would depend on broader economic conditions, regulatory implementation and the institution’s eventual activities.

What Happens Next?

The next significant milestone is the completion of the outstanding regulatory and operational requirements.

Until the CBN issues a final banking license, JPMorgan Merchant Bank Nigeria Limited cannot begin operating as a licensed merchant bank.

The regulator’s decision therefore represents progress towards JPMorgan’s proposed expansion rather than the completion of its entry into Nigeria’s merchant banking sector.

The development will be closely watched as Nigeria seeks to build a more competitive, stable and internationally connected financial system.

Note: The CBN’s preliminary approval gives JPMorgan a pathway towards establishing a merchant bank in Nigeria. The potential benefits include expanded institutional financial services, greater competition and improved access to international financial expertise. The decisive next step, however, remains the granting of a final license and the commencement of operations.

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