JPMorgan gains CBN approval to launch merchant bank in Nigeria

The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish JPMorgan Merchant Bank Nigeria Limited, following a $38 million (N50 billion) capital deposit made on October 20, 2026. The approval represents the first stage of the regulatory licensing process and does not yet permit the bank to commence operations. JPMorgan must complete incorporation with the Corporate Affairs Commission, establish operational systems, and satisfy additional CBN regulatory conditions before receiving a final banking licence, which the bank expects to obtain by year-end 2026 or early 2027.

The CBN announced the approval on October 23, 2026, citing sustained financial sector reforms aimed at strengthening stability, improving market confidence, and deepening Nigeria's integration with global capital markets. CBN Governor Olayemi Cardoso stated the regulator's objective is to build a financial system that is "stable, competitive and internationally connected," capable of supporting investment and economic growth. The approval reflects what CBN officials described as growing international institutional interest in Nigeria's financial markets following the banking sector recapitalisation exercise.

Adedapo Adedayo Olagunju has been approved as managing director of the proposed merchant bank. The CBN also approved Latter Kevin George, Nzelu Chinedum Izunwanne, and Syed Gabriel Murtaza as non-executive directors, and Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni as independent non-executive directors. Once licensed, the merchant bank will offer corporate finance, trade finance, foreign-currency loans, capital raising, and other services directly to large Nigerian companies, expanding on JPMorgan's current operations through a representative office in Lagos.

The development marks a significant shift in JPMorgan's Nigerian presence, which dates to 1961 when Chase Manhattan Bank (later JPMorgan Chase) established a branch in Lagos. Currently, the bank provides corporate and institutional clients with investment banking, markets, payments, and asset-management services through its representative office. The establishment of a regulated merchant bank would enable JPMorgan to increase its participation in Nigeria's corporate lending, trade finance, and investment-banking sectors, potentially competing with established Nigerian merchant banks and the corporate-finance divisions of major commercial lenders.