CBN grants JPMorgan preliminary clearance to set up merchant bank in Nigeria

The Central Bank of Nigeria announced on 23 October 2026 that it had granted an approval‑in‑principle to the U.S. financial group JPMorgan for the creation of a merchant bank in the country. The proposed entity, JPMorgan Merchant Bank Nigeria Limited, will be able to operate only after satisfying a series of regulatory conditions, including incorporation with the Corporate Affairs Commission and receipt of a final banking licence from the CBN.

The approval was communicated by Michael Akuka, director of the CBN’s Corporate Communications and Investor Relations Department, who said the decision aligns with the regulator’s ongoing reforms to strengthen financial stability and deepen Nigeria’s integration with global capital markets. Governor Olayemi Cardoso reiterated the central bank’s objective of building a stable, competitive and internationally connected financial system that can support investment and economic growth.

Background The CBN’s decision follows the successful completion of a sector‑wide recapitalisation programme that, according to the regulator, enhanced the resilience and capacity of Nigeria’s banking industry. The approval also comes amid a broader push by the apex bank to solicit feedback from businesses, state governments and community groups on the impact of monetary and financial sector reforms, a process highlighted at the recent CBN Listens Programme in Ibadan.

JPMorgan’s plan to enter the Nigerian merchant‑banking space has been developing over the past months. Nairametrics reported that on 20 October 2026 the firm deposited N50 billion (approximately US$38 million) with the CBN as part of its licence application. The current approval‑in‑principle clears the way for the appointment of senior management: Adedapo Adedayo Olagunju has been cleared as managing director, while Kevin George Latter, Chinedum Izunwanne Nzelu and Syed Gabriel Murtaza have been approved as non‑executive directors. Independent non‑executive directors Sarah Omotunde Alade, Olukonyinsola Ajayi and Adetu Seni were also named.

Why it matters The establishment of a JPMorgan merchant bank is expected to increase foreign participation in Nigeria’s financial markets, potentially widening access to capital for local enterprises. By attracting a major international institution, the CBN aims to reinforce confidence in the country’s financial system, which could translate into greater investment inflows and support for economic growth.

Stakeholders such as businesses and state governments have been invited to comment on the reforms, indicating that the regulator is seeking to ensure that policy design translates into tangible benefits for households and enterprises. The CBN has highlighted that sustained reforms and credible markets are essential for both domestic and foreign institutions to thrive.

What happens next The approval‑in‑principle is an initial regulatory clearance and does not permit the bank to commence operations. JPMorgan Merchant Bank Nigeria Limited must complete incorporation with the Corporate Affairs Commission, meet all operational and regulatory requirements, and obtain a final operating licence from the CBN before it can begin business. The CBN has indicated that the final licence will be considered once these conditions are satisfied, though no specific timeline has been provided.

The regulator’s broader agenda continues to focus on closing gaps identified through public feedback, strengthening market credibility, and expanding financial services nationwide. As the licensing process proceeds, further updates are expected from both the CBN and JPMorgan regarding compliance milestones and the anticipated launch date of the merchant bank.