JPMorgan Gets CBN Approval-in-Principle for Nigerian Merchant Bank

JPMorgan Chase & Co. has received approval-in-principle from the Central Bank of Nigeria to establish JPMorgan Merchant Bank Nigeria Limited. The bank plans to commence operations before the end of 2026, subject to outstanding regulatory requirements and final authorisation from the CBN.

Capital deposit and licence conditions

JPMorgan reportedly deposited N50 billion, equivalent to about $38 million, with the CBN to meet the minimum capital requirement for a nationally licensed merchant bank, according to Daily Trust. The deposit does not guarantee final approval. The bank must complete the remaining regulatory and operational requirements and obtain the CBN's final authorisation before it can begin operations.

Board and leadership

The proposed bank has secured approval for seven board members, including five Nigerians with experience in banking, monetary policy, financial technology, law and corporate management. Adedapo Olagunju, who has led JPMorgan's West Africa business since 2018, is expected to serve as managing director. He previously held senior positions at Access Bank and Investment Banking & Trust Company, now part of Stanbic IBTC.

Chinedum Nzelu Izunwanne, popularly known as Chi Nzelu, is JPMorgan's global head of macro electronic trading, with expertise in foreign exchange, financial technology and risk management. Former acting CBN Governor Sarah Omotunde Alade has been appointed an independent non-executive director. She served as deputy governor from 2007 to 2017 and later advised the President on finance and the economy.

Olukonyinsola Ajayi, known as Konyin Ajayi, is a partner at Olaniwun Ajayi LP, specialising in banking, project finance, capital markets, mergers and acquisitions, energy and infrastructure. Seni Adetu, who has more than 30 years of multinational leadership experience, completes the list. He previously led Guinness Nigeria and East African Breweries and held senior positions at Coca-Cola and Diageo.

Services and market impact

JPMorgan Merchant Bank Nigeria Limited is expected to provide wholesale banking, corporate finance, structured financing, treasury, capital markets and advisory services. Depending on its final licence, it could also offer trade finance, payments, lending and cross-border transaction services.

Its entry could give Nigerian companies greater access to international financing, helping businesses raise capital, fund major projects and expand into foreign markets through JPMorgan's global network. It could also increase competition in corporate and investment banking, expand services for major businesses and attract foreign investment as Nigeria pursues financial sector reforms. JPMorgan describes itself as a global financial services leader serving corporations, governments and institutions in more than 100 countries.

Mixed reactions and other banking news

The proposed entry has generated mixed reactions among economists and financial analysts. Some believe interest in the development may be linked to the recent Nigeria-US mining agreement. Nigeria and the United States recently signed a framework to unlock investment in Nigeria's estimated $700 billion mineral resources and strengthen cooperation in the critical minerals sector.

Separately, Greenwich Bank has begun commercial banking operations with the opening of three branches in Lagos. The bank opened its new outlets in Surulere, Ikoyi and Victoria Island on Friday, October 2, marking a major step in its transition from merchant banking to commercial banking.

If JPMorgan secures final approval, it could deepen corporate finance options for Nigerian businesses and raise competition among banks serving large corporates. The CBN's final authorisation remains the key condition before operations begin.