The Central Bank of Nigeria has granted approval-in-principle to global banking giant JPMorgan to establish a merchant bank in Nigeria.
The planned bank, JPMorgan Merchant Bank Nigeria Limited, will still need a final licence from the CBN before it can start operations.
The approval is part of ongoing reforms to strengthen the financial sector, boost investor confidence and deepen Nigeria’s link with global capital markets.
In a statement announcing on Friday, Michael Akuka, Director of the Corporate Communications and Investor Relations Department at the CBN, said the proposed entry of the international financial institution reflected growing interest in Nigeria’s financial markets and long-term economic prospects.
He quoted that development was also sequel to the completion of the banking sector recapitalisation exercise, which the CBN said had strengthened the resilience and capacity of the Nigerian banking system.
The recapitalisation exercise forms part of broader reforms under the leadership of CBN Governor Olayemi Cardoso, aimed at strengthening the financial system, deepening financial markets and rebuilding international confidence.
Speaking on the reform agenda, Cardoso said the apex bank was working towards a financial system that was stable, competitive and internationally connected, capable of supporting investment and economic growth.
“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.
He added that the CBN was encouraged by the growing interest of international financial institutions in Nigeria, stressing that the bank would sustain reforms, strengthen market credibility and create an environment in which domestic and international institutions could participate and thrive.
Akuka, however, clarified that the approval-in-principle represents only the first stage of the regulatory approval process and does not amount to a final banking licence.
According to him, JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before it can obtain authorisation to commence business.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
The apex bank further approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The CBN reiterated its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
