CBN Grants JP Morgan Approval-in-Principle for Merchant Bank

The Central Bank of Nigeria (CBN) has granted JP Morgan an approval-in-principle to establish a merchant bank in Nigeria. The proposed lender, JPMorgan Merchant Bank Nigeria Limited, must obtain a final banking licence before it can commence operations.

First stage, not final licence

The CBN said the approval-in-principle is the first stage of the regulatory approval process and does not amount to a final banking licence. JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and completion of necessary operational and regulatory arrangements, before it can be authorised to commence business.

Michael Akuka, director of the CBN's corporate communications and investor relations department, said the approval reflects growing international interest in Nigeria's financial markets and economic prospects. The CBN said the move comes amid reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria's integration with global capital markets. It also follows the completion of the banking sector recapitalisation exercise, which the regulator said has strengthened the resilience and capacity of the Nigerian banking system.

Cardoso links approval to reforms

The approval comes amid broader reforms under Olayemi Cardoso, CBN governor. Cardoso said the goal is to strengthen financial stability, deepen financial markets and restore international confidence in the country's financial system.

“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,” Cardoso said.

“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive.”

Directors and Nigeria footprint

The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank. Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors. Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

The apex bank said the proposed lender can only begin operations after the issuance of a final licence. It reiterated its commitment to maintaining a sound and competitive financial system capable of supporting sustainable economic growth and expanding Nigeria's participation in global financial markets.

In 2025, it was reported that JP Morgan was planning to transform its Lagos representative office into a fully-fledged business branch as part of a broader strategy to expand its presence across Africa. On October 20, the American bank deposited N50 billion ($38 million) with the CBN.

The approval signals deeper international interest in Nigeria's financial markets, but the merchant bank cannot start operations until it secures a final licence and completes CAC incorporation and other regulatory arrangements.