The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial institution JPMorgan to establish a merchant banking subsidiary in Nigeria, marking a new step in the American banking giant’s expansion into the country’s financial services market.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, will operate only after meeting the regulatory conditions required for a final banking licence.
The development was announced in Abuja on Friday, October 23, 2026, through a statement issued by Michael Akuka, Director of Corporate Communications and Investor Relations at the CBN.
CBN Says JPMorgan’s Entry Reflects Growing Investor Interest
According to Akuka, JPMorgan’s decision to pursue a merchant banking licence demonstrates increasing international interest in Nigeria’s financial sector and long-term economic opportunities.
He explained that the approval comes as the CBN continues implementing measures designed to strengthen the banking system, improve financial stability and encourage greater participation in global capital markets.
The central bank also linked the development to its banking sector recapitalisation programme, which it said had strengthened the financial capacity and resilience of Nigerian banks.
The proposed entry of JPMorgan, one of the world’s leading financial institutions, could broaden opportunities for investment banking, corporate financing and other specialised financial services in Nigeria.
JPMorgan Must Meet Conditions Before Commencing Operations
The CBN clarified that approval-in-principle is only the preliminary stage of the licensing process and does not permit the proposed bank to begin commercial operations.
Before receiving its final licence, JPMorgan Merchant Bank Nigeria Limited must satisfy all applicable regulatory requirements.
These include registration with the Corporate Affairs Commission (CAC), completion of operational preparations and compliance with the CBN’s licensing and supervisory standards.
The proposed bank will therefore remain subject to further regulatory review before it can commence business in Nigeria.
Cardoso Reaffirms Commitment to Banking Sector Reforms
CBN Governor Olayemi Cardoso welcomed the growing interest of international financial institutions in Nigeria’s banking industry.
He said the central bank’s priority was to develop a stable, competitive and globally connected financial system capable of supporting investment and sustainable economic growth.
Cardoso emphasised that maintaining credible financial markets and strengthening regulatory confidence would remain central to the bank’s reform programme.
He also highlighted the importance of creating an environment where both Nigerian and international financial institutions can operate effectively.
CBN Approves Proposed JPMorgan Merchant Bank Leadership
As part of the preliminary regulatory process, the CBN approved the nomination of Adedapo Olagunju as Managing Director of the proposed merchant bank.
The regulator also approved Latter George, Nzelu Izunwanne and Syed Murtaza as Non-Executive Directors.
Sarah Alade, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors.
The appointments form part of the proposed institution’s governance arrangements ahead of its anticipated licensing and commencement of operations.
What JPMorgan’s Proposed Merchant Bank Means for Nigeria
Merchant banks typically provide specialised financial services to businesses, institutional investors and other eligible clients rather than operating primarily as conventional retail banks.
Their activities can include corporate finance, investment banking, advisory services, capital market transactions and other services permitted under their regulatory licences.
If JPMorgan completes the licensing process, its proposed Nigerian subsidiary could increase competition in specialised banking services and strengthen connections between local businesses and international financial markets.
However, the scale of its eventual operations, product offerings and investment activities will depend on the final licence and the institution’s business strategy.
CBN Targets Stronger Global Financial Connections
The central bank reiterated its commitment to maintaining a financial system that supports economic development, attracts investment and strengthens Nigeria’s participation in international financial markets.
For now, JPMorgan Merchant Bank Nigeria Limited remains a proposed institution awaiting final regulatory authorisation.
The bank cannot legally commence operations under the proposed merchant banking licence until the CBN grants its final approval.
