The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan, United States-based leading investment banking, commercial banking, financial transaction processing and asset management services firm. to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
The apex bank’s approval signalled growing international confidence in Nigeria’s financial sector reforms.
The apex bank, in a statement on Friday, disclosed that the proposed establishment of a merchant bank by one of the world’s leading financial institutions marked a significant development for Nigeria’s financial sector, reflecting growing international interest in the country’s financial markets and long-term economic prospects.
Announcing the approval, Director of the Corporate Communications and Investor Relations Department at the CBN, Michael Akuka, said the development came amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
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The approval followed the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.
The development comes against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system.
Speaking on the bank’s broader reform priorities, the apex bank governor, Olayemi Cardoso said: “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.
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive”, the banker added.
Akuka clarified that the AIP represented the first stage of the regulatory approval process and did not constitute a final banking licence as the proposed JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before receiving authorisation to commence business.
The CBN management has approved the nomination of Mr Adedapo Adedayo Olagunju as Managing Director of the proposed bank as well as Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as Independent Non-Executive Directors.
While stating that the proposed bank may commence operations only upon its issuing a final licence, the CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.
