The Central Bank of Nigeria (CBN) has granted approval-in-principle to global financial services firm JPMorgan to establish a merchant bank in Nigeria, a development that could deepen competition in the country’s financial markets and strengthen links with international capital.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, received the regulatory approval on October 23, 2026, according to a statement issued by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department.
The approval comes amid ongoing reforms to strengthen Nigeria’s banking system, improve financial stability and restore investor confidence. It also follows the banking sector recapitalisation exercise, which the CBN says has enhanced the resilience and capacity of financial institutions.
For Nigeria’s financial services industry, JPMorgan’s proposed entry represents a potential addition to an established merchant banking market comprising institutions such as Nova Merchant Bank, Coronation Merchant Bank, FSDH Merchant Bank, Rand Merchant Bank Nigeria and Greenwich Merchant Bank.
Merchant banks provide specialised financial services, including corporate finance, investment banking, capital raising, advisory services and financing solutions for businesses and institutional clients. Their activities can support corporate expansion, infrastructure development, investment transactions and access to capital.
JPMorgan’s proposed Nigerian subsidiary could broaden the range of services available to corporate clients and investors, although the extent of its impact will depend on its eventual business strategy, capital commitment, target market and operational capacity.
The development also comes against the backdrop of Nigeria’s efforts to attract international financial institutions and deepen its participation in global capital markets. The presence of a major international financial group could create additional opportunities for businesses seeking access to cross-border financial services and international investors.
CBN Governor Olayemi Cardoso said the regulator was committed to building a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.
“We are encouraged by the growing interest of international financial institutions in Nigeria,” Cardoso said, adding that the apex bank would continue to sustain reforms, strengthen market credibility and create an environment in which domestic and international institutions could participate and thrive.
However, JPMorgan’s approval remains provisional. An approval-in-principle is the initial stage of the regulatory licensing process and does not authorise the proposed institution to commence banking operations.
The bank must complete its incorporation with the Corporate Affairs Commission and satisfy the CBN’s outstanding operational and regulatory requirements before receiving a final licence.
The CBN has approved the nomination of Adedapo Olagunju as managing director of the proposed institution. Latter George, Nzelu Izunwanne and Syed Murtaza were approved as non-executive directors, while Sarah Alade, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
JPMorgan’s proposed entry must also be viewed within the wider context of banking sector recapitalisation and regulatory efforts to ensure that financial institutions have sufficient capital to withstand risks and support economic activity. The applicable capital requirement for merchant banks should be distinguished from those governing other categories of banks, with the precise minimum verified against the relevant CBN directives.
Ultimately, the significance of the proposed establishment will depend on whether it translates into additional financing capacity, stronger corporate financial services and greater access to international markets for Nigerian businesses.
For the CBN, the immediate task remains completing the licensing process while ensuring that the proposed institution meets the standards required to operate within Nigeria’s financial system.
