JPMorgan receives preliminary approval for Nigerian merchant bank

The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan to establish a merchant bank, to be known as JPMorgan Merchant Bank Nigeria Limited. This move marks a significant expansion for the American financial institution, which has previously operated in the country primarily through a representative office in Lagos.

To meet capital requirements for a national license, JPMorgan reportedly deposited N50 billion (approximately $38 million) with the CBN. The proposed entity will focus on specialized financial services for corporations and institutional clients rather than conventional retail banking.

The CBN has approved Adedapo Olagunju as the proposed managing director. The bank's leadership structure will also include six directors, five of whom are Nigerians: Chinedum Nzelu Izunwanne, Sarah Omotunde Alade, Olukonyinsola Ajayi, and Seni Adetu. These nominees bring expertise in areas such as treasury management, monetary policy, and capital markets.

This development follows Nigeria’s banking sector recapitalization programme and reforms intended to strengthen financial stability and deepen the nation's connection to global capital markets.