The Central Bank of Nigeria, CBN, has granted approval-in-principle to American banking giant, JPMorgan, to establish a merchant bank in Nigeria, marking the expansion of US banking sector to the country.
The apex bank, in a statement issued on Friday by Its Director of Corporate Communications and Investor Relations Department, Michael Akuka, said the proposed JPMorgan Merchant Bank Nigeria Limited, must satisfy the applicable regulatory requirements and obtain a final licence from CBN before commencing operations.
CBN said the development reflected increasing interest by international financial institutions in Nigeria’s financial markets and long-term economic prospects.
Akuka linked the proposed entry to the conclusion of the banking sector recapitalisation exercise, which the CBN said had enhanced the resilience and capacity of the country’s banking system.
The recapitalisation exercise is part of broader reforms pursued under CBN Governor Olayemi Cardoso to strengthen financial institutions, deepen capital markets and improve international confidence in Nigeria’s financial sector.
According to Cardoso, the apex bank is committed to building a financial system capable of supporting investment, promoting competition and connecting Nigeria more effectively to global markets.
“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,” he said.
The CBN governor added that the growing interest of international financial institutions was encouraging, pledging to sustain reforms, improve market credibility and create an environment in which both domestic and foreign institutions could operate and grow.
However, the approval-in-principle does not authorise JPMorgan to begin banking operations in Nigeria.
According to Akuka, the proposed merchant bank must meet all applicable regulatory conditions, including registration with the Corporate Affairs Commission and the completion of required operational and regulatory arrangements, before the CBN can grant it a final licence.
The apex bank has also approved the appointment of Adedapo Adedayo Olagunju as managing director of the proposed institution.
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 received approval to serve as independent non-executive directors.
The proposed entry comes amid efforts by the CBN to improve the capacity of Nigerian banks to withstand economic shocks, support businesses and compete more effectively in an increasingly interconnected global financial system.
The apex bank reiterated its commitment to maintaining a sound, competitive and internationally connected financial sector capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
