CBN grants JPMorgan approval-in-principle to establish merchant bank
By Babajide Komolafe
The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish a new merchant bank named JPMorgan Merchant Bank Nigeria Limited.
This initiative by one of the world’s leading financial institutions is a significant development in Nigeria’s financial sector, indicating a rising international interest in the country’s financial markets and its long-term economic prospects.
Michael Akuka, Director of the Corporate Communications and Investor Relations Department at the CBN, announced the approval, emphasizing that it aligns with ongoing reforms intended to enhance financial stability, boost market confidence, and deepen Nigeria’s integration into global capital markets.
The approval follows recent banking sector recapitalization exercises, which have bolstered the strength and capacity of the Nigerian banking system. This move aligns with the CBN’s broader reform agenda under Governor Olayemi Cardoso, which focuses on fortifying financial stability, expanding financial markets, and rebuilding international confidence in Nigeria’s financial framework.
Governor Cardoso stated that the objective is to cultivate a financial system that is stable, competitive, and internationally connected—one that inspires confidence and effectively supports investment and economic growth. “We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, enhancing the credibility of our markets, and fostering an environment where both domestic and international institutions can thrive,” he said.
Akuka clarified that the AIP is the initial stage of the regulatory approval process and does not serve as a final banking license. JPMorgan Merchant Bank Nigeria Limited must meet all relevant regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it can begin operations.
The CBN has also approved the nomination of Mr. Adedapo Adedayo Olagunju as the Managing Director of the proposed bank. Additionally, Latter Kevin George, Nzelu Chinedum Izunwanne, and Syed Gabriel Murtaza have been approved as Non-Executive Directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni will serve as Independent Non-Executive Directors.
The proposed bank will only be able to commence operations upon receiving a final license from the CBN.
The CBN reiterated its commitment to maintaining a sound, competitive, and internationally connected financial system that promotes sustainable economic growth and enhances Nigeria’s participation in global financial markets.
