The Central Bank of Nigeria (CBN) has officially granted an Approval-in-Principle (AIP) to JPMorgan Chase & Co. to establish JPMorgan Merchant Bank Nigeria Limited.
Announced by CBN Director of Corporate Communications, Michael Akuka, the preliminary authorization allows the largest U.S. bank to transition its longstanding Lagos representative office into a fully operational, onshore merchant banking entity.
The approval follows JPMorgan’s ₦50 billion ($38 million) statutory escrow deposit and aligns with Governor Olayemi Cardoso’s banking sector recapitalization and financial stability reform agenda.
Key Strategic & Market Takeaways
-
Clearance of Executive Leadership: The CBN concurrently approved key board appointments for the proposed merchant bank, naming Adedapo Olagunju as Managing Director alongside former CBN Deputy Governor Dr. Sarah Alade as Independent Non-Executive Director.
-
Prerequisites for Final License: The CBN emphasized that the AIP is a conditional stage and does not authorize immediate banking operations. JPMorgan must finalize entity incorporation with the Corporate Affairs Commission (CAC) and satisfy operational readiness tests before receiving a final merchant banking license.
-
Deepening Onshore Capital Markets: A full merchant banking license enables JPMorgan to deploy balance-sheet capital directly in Nigeria, underwrite primary corporate and sovereign debt issuances on the NGX, handle foreign exchange clearing, and structure corporate finance mandates locally.
-
Validation of Cardoso Reform Agenda: Governor Olayemi Cardoso stated that the entry of top-tier global institutions reflects growing international confidence in Nigeria’s reformed monetary policy framework, supported by gross external reserves near $58 billion and a stabilized interbank FX market.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
 to JPMorgan Chase & Co. to establish JPMorgan Merchant Bank Nigeria Limited.){kind=link}