The Central Bank of Nigeria has granted JPMorgan an Approval-in-Principle to establish a merchant bank. The proposed entity will be called JPMorgan Merchant Bank Nigeria Limited. The CBN announced the decision on Friday. Michael Akuka, Director of Corporate Communications and Investor Relations, issued the statement. The approval is the first stage of the regulatory process. It is not a final banking licence.
JPMorgan has maintained a presence in Nigeria for decades, but only as a representative office. It advised on sovereign debt and corporate transactions. It did not hold a local banking licence. The CBN has licensed merchant banks before. The segment is small and specialised. It serves corporations, governments and high-net-worth clients. Retail banking is separate. In 2023, the CBN began a recapitalisation drive. Banks raised over ₦4.6 trillion. Balance sheets strengthened. Fitch revised Nigeria’s outlook to positive in October 2026. The currency has stabilised. Reserves are at $55 billion. Global institutions are returning.
Akuka said the approval signals growing international confidence in Nigeria’s financial reforms. It follows the recapitalisation exercise. “The proposed establishment of a merchant bank by one of the world’s leading financial institutions marks a significant development for Nigeria’s financial sector,” he said. The CBN said the move reflects interest in Nigeria’s markets and long-term prospects.
The approval does not permit operations. JPMorgan must incorporate with the Corporate Affairs Commission. It must complete operational and regulatory arrangements. A final licence must follow. Only then can the bank open.
The CBN also approved board nominations. Adedapo Olagunju will serve as Managing Director. Latter George, Nzelu Izunwanne and Syed Murtaza were approved as Non-Executive Directors. Sarah Alade, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors. Alade is a former Acting Governor of the CBN. Her inclusion brings regulatory experience.
Governor Olayemi Cardoso framed the decision in strategic terms. “The objective is to build a financial system that is stable, competitive and internationally connected,” he said. “One that commands confidence and can effectively support investment and economic growth.” He said the CBN remains focused on sustaining reforms and strengthening market credibility.
Winners: The CBN, which gains validation of its reforms. JPMorgan, which gains a pathway into Nigerian banking. Corporate clients, who gain access to a global institution’s balance sheet. The Nigerian Exchange, which may see more cross-border deals. The treasury, which gains a signal of confidence. Losers: Domestic merchant banks, which face a formidable competitor. Retail banks hoping to expand into merchant services. Critics who say foreign banks extract value without deepening local lending. Firms that cannot meet JPMorgan’s client thresholds. The naira, if the bank’s operations increase dollar demand.
Bottom Line: JPMorgan has an approval-in-principle. It is not a licence. The bank must incorporate, build and satisfy the CBN. When it opens, it will serve corporates, not households. The signal matters more than the entity. A global bank is betting on Nigeria again. That bet follows reforms, reserves and a steadier currency. The CBN has earned the confidence. It must now sustain it.