JPMorgan says reforms and CBN regulation drew it to Nigeria as it targets merchant bank licence

JPMorgan has tied its decision to expand in Nigeria to the country's recent economic reforms and the quality of banking regulation at the Central Bank of Nigeria. The American bank has already deposited N50 billion with the CBN and secured approval-in-principle for a merchant bank, with a final licence targeted for December 2026 or early 2027.

Dapo Olagunju, managing director of J.P. Morgan West Africa, said the reforms pushed through over the past three to four years have improved the investment environment and shaped the bank's plan to set up a merchant banking business in the country.

What Olagunju said at the summit

He spoke during a panel discussion on attracting investment to Nigeria at the 32nd Nigerian Economic Summit in Abuja on Tuesday, October 27, 2026.

According to him, the scale and impact of the reforms represent a major shift in Nigeria's economic environment.

"The level of reforms and the impact of the reforms is why we are expanding in Nigeria. We are also very impressed with the quality of banking regulations at the central bank," Olagunju said.

He said the decision to deepen the bank's presence reflected confidence in the country's evolving business environment, and that JPMorgan was backing the assessment with real money.

"We are putting our money where our mouth is," he said.

Olagunju also praised the CBN's regulatory standards, describing the apex bank as "very well professionally run".

N50 billion deposit and licence timeline

The CBN granted approval-in-principle to JPMorgan Merchant Bank Nigeria Limited on October 23, moving the bank closer to a licensed merchant banking operation.

As part of the licensing requirements, JPMorgan has deposited N50 billion, about $38 million, with the central bank.

The approval-in-principle does not allow the proposed bank to start operations. It must still obtain a final banking licence from the CBN before launching services. The bank is targeting final approval by December 2026 or early 2027, though the timeline depends on the regulator.

The merchant banking licence would let JPMorgan move beyond its existing representative office in Lagos and offer a wider range of services to Nigerian businesses and institutions, subject to regulatory approval.

Leadership of the proposed bank

JPMorgan has appointed Sarah Alade, a former acting governor of the CBN, as an independent director of the proposed Nigerian merchant bank.

Alade served as acting governor in 2014 after the suspension of then governor Sanusi Lamido Sanusi. She spent 24 years at the CBN and also served as economic adviser to former president Muhammadu Buhari.

What it means for Nigerian businesses

A licensed JPMorgan merchant bank would give large Nigerian companies and institutions a more direct route to international financial expertise and cross-border banking services. For the CBN, the entry of a global bank of this size is an early test of whether the reform push is translating into fresh capital and new licences, not just improved sentiment.