By Tochukwu Bliss, Abuja
The Central Bank of Nigeria (CBN) said it has granted Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
According to a CBN statement, the proposed establishment of a merchant bank by one of the world’s leading financial institutions marks a significant development for Nigeria’s financial sector, reflecting growing international interest in the country’s financial markets and long-term economic prospects.
Announcing the approval, Director, Corporate Communications and Investor Relations Department, CBN, Michael Akuka, was quoted as saying that the development comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
The approval follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.
The development is said to come against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system.
Approval signals growing international confidence in Nigeria’s financial sector reforms and follows a successful banking sector recapitalisation exercise.
Speaking on the Bank’s broader reform priorities, Governor Cardoso said: “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.
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive.”
Akuka clarified that the AIP represents the first stage of the regulatory approval process and does not constitute a final banking licence.
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 receiving authorisation to commence business.
Meanwhile, the CBN has approved the nomination of Adedapo Olagunju as Managing Director of the proposed bank.
The Bank also approved Kevin George, Chinedum Izunwanne, and Syed Gabriel Murtaza as Non-Executive Directors. Sarah Alade, Ajayi Olukonyinsola and Adetu Seni were also approved as Independent Non-Executive Directors.
The proposed bank may commence operations only upon the CBN issuing a final licence.
The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.
