CBN Grants JPMorgan Approval-in-Principle to Establish Merchant Bank in Nigeria
Oru Leonard
The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to global financial services giant JPMorgan to establish a merchant bank in Nigeria, a development expected to deepen the country’s financial markets and strengthen its connection with international capital markets.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, represents a significant development for Nigeria’s financial sector amid ongoing reforms aimed at strengthening financial stability, improving investor confidence and attracting international investment.
The CBN disclosed the approval in a statement by Michael Akuka, Director of its Corporate Communications and Investor Relations Department.
According to the statement, the development reflects growing international interest in Nigeria’s financial markets and long-term economic prospects.
The approval also follows the successful implementation of the banking sector recapitalisation exercise, which the CBN said had strengthened the resilience and capacity of the Nigerian banking system.
The development comes as the apex bank intensifies efforts under Governor Olayemi Cardoso to strengthen financial stability, deepen financial markets and restore international confidence in the country’s financial system.
Commenting on the reforms, Cardoso said the CBN was 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,” he said.
The CBN governor added that the growing interest of international financial institutions in Nigeria was encouraging, stressing that the bank would sustain reforms, strengthen market credibility and create an environment where domestic and foreign institutions could operate successfully.
However, the CBN clarified that the Approval-in-Principle represents only the first stage of the regulatory approval process and does not amount to a final banking licence.
It explained that JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it can receive authorisation to commence business.
The apex bank also approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.
Those approved as Non-Executive Directors are Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza.
The CBN further approved Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as Independent Non-Executive Directors.
The proposed bank will be permitted to commence operations only after the CBN issues its final licence.
The apex bank reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
