Central Bank of Nigeria Approves JPMorgan Merchant Bank

The Central Bank of Nigeria granted approval-in-principle to JPMorgan Chase & Co to establish a merchant bank, which will operate as JPMorgan Merchant Bank Nigeria Limited. This preliminary regulatory step allows the institution to begin incorporation with the Corporate Affairs Commission and operational setup, though it does not yet constitute a final banking license. As part of the application, JPMorgan deposited 50 billion naira, approximately $38 million, with the regulator.

The proposed bank will focus on specialized financial services, including corporate finance, investment banking, and advisory services, rather than retail banking. The regulator has already approved the appointment of Adedapo Adedayo Olagunju as Managing Director, along with several non-executive and independent non-executive directors. The institution is expected to secure its final license by late 2026 or early 2027.

Governor Olayemi Cardoso stated that the approval aligns with a broader reform agenda and a banking sector recapitalization exercise intended to strengthen financial resilience. Cardoso noted that the objective is to build a financial system that is "stable, competitive and internationally connected," aimed at rebuilding international confidence and deepening Nigeria's financial markets.