J.P. Morgan Plans Nigerian Merchant Bank, Targets Operations Before End of 2026

J.P. Morgan plans to set up a merchant bank in Nigeria, with operations targeted to begin before the end of 2026. The launch is subject to regulatory approval.

Dapo Olagunji, managing director of J.P. Morgan West Africa, announced the plan at the Nigeria-Asia Financial Connectivity Dialogue in Singapore. He disclosed it while welcoming participants to the event, which drew investors, financial institutions, businesses and Nigerians living and working across Asia.

Who Organised The Dialogue

The event was organised by the Central Bank of Nigeria (CBN) in collaboration with J.P. Morgan, Nigerian Exchange Group (NGX) and FMDQ Group. Information shared at the dialogue indicated the proposed bank would strengthen J.P. Morgan's connections with Nigerian businesses and the country's capital markets, BusinessDay reports.

J.P. Morgan already operates in Nigeria, serving clients through its asset and wealth management and commercial and investment banking businesses. The merchant bank would expand that footprint, but the firm must first secure the necessary regulatory approvals.

Earlier Talks With Government

The plan follows earlier engagements between the US firm and Nigerian officials over investment opportunities. In January 2025, a delegation led by Olagunji met with Wale Edun, who was then the Minister of Finance and Coordinating Minister of the Economy, in Abuja.

The announcement came during CBN Governor Olayemi Cardoso's engagements in Singapore, ahead of the IMF-World Bank Annual Meetings in Bangkok. Cardoso's programme included discussions with the Monetary Authority of Singapore (MAS) and the signing of a memorandum of understanding with the Global Finance & Technology Network (GFTN).

The agreement with GFTN establishes a framework for cooperation on financial innovation and stronger links between institutions in Nigeria and Singapore. During the talks with MAS, both sides explored financial sector development, regulation, market connectivity and innovation, according to Nairametrics.

Cardoso said Nigeria's financial reforms were intended to support deeper, more liquid and internationally connected markets. He also stressed the importance of credible monetary policy, stronger governance, transparent market operations and predictable regulations in attracting long-term investment.

What It Means For Nigerian Markets

The CBN's engagement with Asian financial institutions forms part of broader efforts to expand international partnerships and create more room for investment, trade and financial innovation. A J.P. Morgan merchant bank would add another layer to that push, subject to the completion of the regulatory process.

In a related development, Paystack marked its 10th anniversary with the launch of a new subsidiary, Paystack Microfinance Bank (MFB), after acquiring Ladder Microfinance Bank. Founded in Nigeria a decade ago to simplify how businesses get paid, Paystack has grown from a single payments product into a platform operating across five African countries.