The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in the country, taking the global financial institution a step closer to expanding its operations in Africa’s largest market by population.
The proposed lender, JPMorgan Merchant Bank Nigeria Limited, received preliminary regulatory approval as part of efforts to deepen Nigeria’s financial markets and attract international investment.
The CBN announced the development on Friday through Michael Akuka, Director of its Corporate Communications and Investor Relations Department, linking the approval to reforms aimed at strengthening financial stability, improving investor confidence and integrating the country more closely with global capital markets.
The regulator said the approval followed the implementation of the banking sector recapitalisation programme, which it said had strengthened the resilience and capacity of Nigeria’s banking industry.
CBN Governor Olayemi Cardoso said the bank remained committed to developing 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.
Cardoso described the growing interest of international financial institutions in Nigeria as encouraging, adding that the CBN would sustain reforms to strengthen the credibility of the country’s financial markets.
“We are encouraged by the growing interest of international financial institutions in Nigeria,” he said, noting that the regulator wanted to create an environment in which domestic and foreign institutions could participate and thrive.
As part of the approval process, the CBN cleared Adedapo Adedayo Olagunju as the proposed managing director of the merchant bank.
It also approved 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.
However, the approval-in-principle does not authorise the proposed bank to begin operations. JPMorgan Merchant Bank Nigeria Limited must satisfy the remaining regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of operational arrangements, before obtaining a final licence from the CBN.
The proposed entry comes as Nigerian authorities seek to attract more international financial institutions, deepen domestic capital markets and strengthen the country’s position as a destination for investment and financial services.
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