CBN Approves JPMorgan’s Merchant Bank In Nigeria

The Central Bank of Nigeria has given JPMorgan Chase the green light to move ahead with plans for a merchant bank in the country. On Friday, yesterday October 23, the central bank issued an Approval-in-Principle for the proposed JPMorgan Merchant Bank Nigeria Limited, marking a notable step in the American bank’s long-standing presence in Africa’s largest economy. 

Michael Akuka, The Director of Corporate Communications and Investor Relations at the CBN, announced the decision. 

He linked it to ongoing reforms designed to strengthen financial stability, restore market confidence, and draw Nigeria closer to global capital markets. The approval comes after the successful rollout of the banking sector recapitalization program, which the central bank says has improved the resilience of local lenders.

JPMorgan has already deposited the required N50 billion—roughly $38 million—with the CBN. That sum matches the minimum capital requirement for a nationally authorized merchant bank. The deposit, reported earlier this week, was one of the final hurdles before the preliminary nod. 

Adedapo Adedayo Olagunju, the bank’s Managing Director for West Africa, has been cleared to lead the new bank as managing director. The CBN also approved three non-executive directors—Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza—along with three independent non-executive directors: Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni. Five of the seven board nominees are Nigerians.The Approval-in-Principle is only the first stage. 

JPMorgan Merchant Bank Nigeria Limited must still complete incorporation with the Corporate Affairs Commission and meet the remaining operational and regulatory conditions before the CBN issues a final license. Until then, the bank cannot open for business or accept deposits.

For years, JPMorgan has operated mainly through a representative office in Lagos, advising governments and companies on Eurobond deals and other transactions. A full merchant banking license would allow it to expand into wholesale banking, capital markets activity and advisory services onshore, giving it a stronger platform to serve Nigerian corporates and institutional clients.

CBN Governor Olayemi Cardoso has repeatedly stressed the need for a stable, competitive financial system that can support investment and growth while attracting both local and international players. The JPMorgan move is being read by many as a vote of confidence in the reform agenda after years of currency volatility and policy uncertainty.

The development also sits against a wider backdrop of renewed interest in Nigeria’s markets. Earlier this year the country regained a place in one of JPMorgan’s emerging-market bond indexes, and the bank has spoken openly about plans to deepen its African footprint.

Whether the final license arrives before the end of 2026 or early next year remains to be seen. What is clear is that one of the world’s largest banks is prepared to put more capital and local leadership behind its Nigerian operations. For a country still working to rebuild international trust in its financial system, that signal carries weight.