CBN Grants JPMorgan Approval-in-Principle for Merchant Bank

The Central Bank of Nigeria has granted JPMorgan approval-in-principle to establish JPMorgan Merchant Bank Nigeria Limited. The approval opens a new chapter for the global lender in Nigeria’s financial sector, but it does not yet allow the bank to start operations or accept deposits.

The CBN said the proposed bank must meet outstanding regulatory requirements, complete registration with the Corporate Affairs Commission and obtain a final banking licence before it can conduct banking business.

Leadership and board approvals

The CBN has approved Adedapo Adedayo Olagunju as managing director of the proposed merchant bank. Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza have been approved as non-executive directors.

The regulator also cleared Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.

Michael Akuka, the CBN’s Director of Corporate Communications and Investor Relations, announced the development. He described it as a sign of growing international interest in Nigeria’s financial sector.

Cardoso speaks on open financial system

CBN Governor Olayemi Cardoso said the move aligns with the regulator’s push for a stronger and more internationally connected financial system. Cardoso said: “Our aim is to have a safe, sound, competitive and globally integrated financial system that engenders trust and can support investment and growth.”

He added that the CBN welcomes increasing interest from international financial institutions and remains committed to an open and competitive environment for domestic and foreign players.

The CBN stressed that approval-in-principle is only the first stage in the licensing process. It does not authorise JPMorgan Merchant Bank Nigeria Limited to conduct banking business or accept deposits before final regulatory approval.

Recapitalisation and market link

JPMorgan’s planned entry comes as Nigeria pushes ahead with its banking sector recapitalisation programme. The policy requires lenders to meet higher minimum capital requirements to strengthen their capacity to finance large-scale investments, withstand economic shocks and support broader economic growth.

The proposed merchant bank could further connect Nigeria’s financial system with international capital markets. Its actual impact will depend on its eventual operations and the services it provides.

The CBN reiterated its commitment to reforms aimed at deepening Nigeria’s links with international capital markets and supporting sustainable economic development.

Separately, Bank78 MFB has commenced operations as a private digital lender in Nigeria. Its Director of Sales, Eberechukwu Dikse, described the bank’s corporate philosophy as “prestige made accessible,” saying the concept goes beyond aesthetics. Bank78 MFB said it is designed for the mass-affluent everyday Nigerian and offers a secure and premium digital banking experience.

For Nigerian businesses and consumers, the JPMorgan approval-in-principle signals continued foreign interest in the banking sector, though the practical effect will only emerge after final licensing and take-off.