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 proposed entry of one of the world’s leading financial institutions into Nigeria’s merchant banking sector marks a significant development for the country’s financial industry, reflecting growing international interest in its financial markets and long-term economic prospects.

The Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, who announced the approval, said the development came amid sustained reforms aimed at strengthening financial stability, improving market confidence, and deepening Nigeria’s integration with global capital markets.

The approval follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.

It also comes against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, which focuses on strengthening financial stability, deepening financial markets, and rebuilding international confidence in Nigeria’s financial system.

“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 was quoted as saying.

“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.”

Akuka further explained that the AIP represents the first stage of the regulatory approval process and does not constitute 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 the necessary operational and regulatory arrangements, before it can receive authorisation to commence business.

The CBN also approved the nomination of Adedapo Olagunju as managing director of the proposed bank.

The bank’s proposed non-executive directors, Latter Kevin George, Nzelu Chinedum Izunwanne, and Syed Gabriel Murtaza, were also approved.

In addition, Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni were approved as independent non-executive directors.

The proposed bank may commence operations only after the CBN issues a final licence.