CBN Gives JPMorgan Green Light to Establish Merchant Bank in Nigeria

JPMorgan has secured preliminary approval from the Central Bank of Nigeria (CBN) to establish JPMorgan Merchant Bank Nigeria Limited, paving the way for the US banking giant to strengthen its presence in Nigeria’s financial sector.

The approval-in-principle (AIP) was announced by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department.

The proposed merchant bank will, however, need to fulfil all outstanding regulatory requirements and obtain a final banking licence before it can commence operations.

## CBN Approves Preliminary Licence for JPMorgan

According to the CBN, the approval comes after the completion of Nigeria’s banking sector recapitalisation exercise, which was aimed at strengthening the capacity and resilience of financial institutions.

The development also aligns with the reform agenda of CBN Governor Olayemi Cardoso, which focuses on financial stability, deeper capital markets and restoring international confidence in Nigeria’s financial system.

Cardoso said the apex bank was working towards building a stable and competitive financial system capable of supporting investment and 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,” he said.

He added that the CBN would continue implementing reforms to improve market credibility and create an environment where local and international financial institutions could operate and grow.

## CBN Approves Management and Board Appointments

Alongside the preliminary approval, the CBN approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.

The regulator also approved the appointment 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 approval-in-principle represents an early stage in the licensing process and does not authorise JPMorgan Merchant Bank Nigeria Limited to begin banking operations.

The proposed institution must complete the applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and other necessary operational arrangements, before the CBN can issue its final licence.

The apex bank said the process reflects its commitment to maintaining a sound, competitive and internationally connected financial system.

## JPMorgan Moves to Expand Its Nigerian Operations

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.

Nairametrics reported on October 20, 2026, that JPMorgan had deposited N50 billion, equivalent to approximately $38 million, with the CBN as it pursued a merchant banking licence.

The bank is also planning to transform its longstanding Lagos representative office into a fully operational business branch, allowing it to expand the range of services available to Nigerian corporate clients.

In April 2025, Nairametrics reported that JPMorgan was preparing to apply for a merchant banking licence as part of its broader expansion plans across Africa.

The CBN’s latest decision marks another step towards the establishment of the proposed bank. However, JPMorgan must satisfy the remaining licensing conditions before it can begin operations in Nigeria.