The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a significant step in the United States financial services giant’s planned expansion in the country.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, will operate as a locally incorporated banking entity once it completes the outstanding regulatory requirements and receives a final operating licence from the apex bank.
The CBN announced the development on Friday, October 23, 2026, saying the preliminary approval reflects growing international interest in Nigeria’s financial markets and the progress made under ongoing reforms aimed at strengthening the banking sector.
Michael Akuka, Director of Corporate Communications and Investor Relations at the CBN, said the approval-in-principle represents the first stage of the regulatory licensing process. He stressed that it does not amount to a final banking licence.
JPMorgan must still fulfil the applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of the necessary operational and regulatory arrangements, before it can commence business.
The CBN has also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank.
Other approved nominees include Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors. Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni have been approved as independent non-executive directors.
The appointments provide a proposed leadership and governance structure for the institution as it progresses through the remaining stages of the licensing process.
The move comes amid efforts by Nigerian authorities to strengthen the financial system, attract foreign investment and deepen the country’s participation in international capital markets.
The CBN said the approval follows the implementation of the banking sector recapitalisation exercise, which was designed to improve lenders’ financial resilience and capacity to support businesses and economic growth.
Under Governor Olayemi Cardoso, the central bank has pursued reforms intended to strengthen financial stability, improve confidence in the banking system and enhance the credibility of Nigeria’s financial markets.
Commenting on the reform agenda, 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.”
He added that the CBN welcomed the growing interest of international financial institutions in Nigeria, emphasising the need to sustain reforms and create an environment in which domestic and foreign institutions can operate.
JPMorgan’s proposed merchant bank would expand the US financial institution’s existing presence in Nigeria. The company already operates in the country through its representative office in Lagos, serving clients within the limits of its existing regulatory permissions.
A licensed merchant banking subsidiary could provide a platform for a broader range of permitted services to corporate and institutional clients, potentially including corporate finance, capital markets transactions and financial advisory services. The precise scope of its activities will depend on the final licence and applicable regulatory approvals.
The proposed establishment also comes as Nigeria seeks to attract more international financial institutions into its banking and capital markets sectors. Greater participation could widen the range of financial services available to businesses, although the eventual impact will depend on the bank’s investment, operations and services after licensing.
For JPMorgan, the move would represent a further step towards expanding its regulated presence in one of Africa’s largest economies. For Nigeria, it signals continued international institutional interest as authorities work to strengthen financial sector capacity and rebuild investor confidence.
However, the approval-in-principle should not be interpreted as confirmation that the bank has commenced operations or obtained a full banking licence. JPMorgan Merchant Bank Nigeria Limited can begin business only after satisfying the outstanding requirements and securing final authorisation from the CBN.