The preliminary approval follows JPMorgan’s reported deposit of approximately $38 million (N50 billion) with the CBN, matching the minimum capital requirement for a nationally authorised merchant bank.
It also marks a significant change in JPMorgan’s Nigerian operations. The Wall Street group currently operates from a representative office in Lagos, through which it provides corporate and institutional clients with investment banking, markets, payments and asset-management services.
A merchant banking licence would give it a locally regulated platform from which it could provide corporate finance, trade finance, foreign-currency loans, capital raising and other services directly to large Nigerian companies.
The CBN announced the approval in a statement, saying it came amid reforms intended to strengthen financial stability and deepen Nigeria’s connection to international capital markets. However, the regulator stressed that approval-in-principle is only the first stage and does not permit the proposed bank to begin operations.
Final banking licence still required
JPMorgan Merchant Bank Nigeria must register with the Corporate Affairs Commission, establish the required operational systems and satisfy the CBN’s remaining regulatory conditions.
It can only begin business after the regulator completes its assessment and issues a final merchant banking licence.
At the time, regulatory approval remained outstanding, with the US banking group expecting to secure a licence by the end of 2026 or early 2027.
The event brought together the CBN, JPMorgan, the Nigerian Exchange Group and FMDQ Group as Nigerian authorities sought to strengthen connections between domestic markets and international investors.
Mr Olagunju said at the time that the proposed bank would expand JPMorgan’s relationship with Nigerian businesses and the country’s capital markets.
The group, which controls approximately $5 trillion in assets, is seeking a larger share of corporate lending, payments, trade finance and investment-banking activity across Africa.
More competition for Nigerian merchant banks
The proposed bank will compete with established Nigerian merchant banks and the corporate-finance divisions of the country’s largest commercial lenders.
Its arrival could increase access to dollar-denominated loans and international capital for major companies, particularly businesses operating in energy, telecommunications, infrastructure, manufacturing and financial services.
JPMorgan has previously arranged international financing for Nigeria, including serving among the banks that managed the federal government’s $2.2 billion Eurobond sale in 2024.
Governor Olayemi Cardoso said the regulator wants to create a stable and internationally connected financial system 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,” Mr Cardoso said.
The CBN also approved Kevin George Latter, Chinedum Nzelu Izunwanne and Gabriel Murtaza Syed as non-executive directors of the proposed bank.
Sarah Omotunde Alade, Olukonyinsola Ajayi and Seni Adetu were approved as independent non-executive directors.