The Central Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
The approval was announced on Friday by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department, amid ongoing reforms to strengthen financial stability, boost market confidence and deepen Nigeria’s integration with global capital markets.
According to the CBN, the approval followed the successful completion of the banking sector recapitalisation exercise, which strengthened the resilience and capacity of the Nigerian banking system.
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,” Cardoso said.
He added that the growing interest of international financial institutions in Nigeria was encouraging, noting that the CBN would sustain reforms to strengthen market credibility and create an environment where domestic and foreign institutions could operate effectively.
“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,” he said.
The CBN clarified that the Approval-in-Principle represents the initial stage of the regulatory process and does not amount to a final banking licence.
JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and the completion of necessary operational and regulatory arrangements, before it can commence business.
The apex bank also approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.
Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The proposed bank will be authorised to commence operations only after the CBN issues its final operating licence.
