ABUJA, Nigeria — The Central Bank of Nigeria (CBN) has granted American financial services giant JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a major development in the country’s financial services sector.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, must fulfil outstanding regulatory requirements and obtain a final banking licence from the apex bank before commencing operations.
The CBN announced the approval on Friday, October 23, 2026, in a statement issued by Michael Akuka, Director of Corporate Communications and Investor Relations.
According to the apex bank, the development reflects growing international interest in Nigeria’s financial markets and follows reforms aimed at strengthening financial stability, improving investor confidence and deepening the country’s integration with global capital markets.
The approval also follows the implementation of the CBN’s banking sector recapitalisation exercise, which was designed to strengthen the resilience and capacity of Nigerian banks.
CBN Governor Olayemi Cardoso said the regulator remained committed to building a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.
“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.
He added that the regulator welcomed the growing interest of international financial institutions in Nigeria and would continue pursuing reforms to strengthen the credibility of the country’s financial markets.
The CBN, however, clarified that approval-in-principle is only the first stage of the licensing process and does not constitute a final banking licence.
JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and satisfy the applicable operational and regulatory requirements before receiving authorisation to commence business.
The apex bank also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed institution.
Other approved appointments include Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
JPMorgan’s proposed entry into Nigeria’s merchant banking sector is expected to expand its institutional presence in the country. Merchant banks typically provide specialised services such as corporate finance, investment banking, capital raising and financial advisory services to businesses and institutional clients.
The development could also widen the range of financial services available to Nigerian companies seeking investment, financing and access to international capital markets. However, the scale and timing of the proposed bank’s operations will depend on its final licence and business strategy.
The approval comes as Nigeria continues efforts to attract foreign investment and strengthen confidence in its financial system. Nevertheless, the proposed institution cannot begin banking operations until the CBN grants its final authorisation.
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