The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, is expected to deepen the bank’s participation in Nigeria’s financial services sector and strengthen its capacity to serve institutional and corporate clients.

The approval was announced on Friday by Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department. The central bank said the development reflects growing international interest in Nigeria’s financial markets amid ongoing reforms aimed at strengthening financial stability and restoring confidence in the financial system.

The approval also follows the banking sector recapitalisation exercise, which the CBN says is intended to improve the capacity and resilience of Nigerian banks.

CBN Governor Olayemi Cardoso said the regulator’s objective was to build a stable, competitive and internationally connected financial system capable of attracting investment and supporting economic growth. He added that sustaining reforms and improving the credibility of Nigeria’s financial markets remained important to attracting both domestic and international institutions.

However, the approval-in-principle does not amount to a full banking licence and does not authorise JPMorgan’s proposed merchant bank to begin operations.

According to the CBN, the company must complete the required incorporation process with the Corporate Affairs Commission and satisfy outstanding operational and regulatory conditions before it can receive final authorisation to commence business.

The regulator has also approved Adedapo Adedayo Olagunju as Managing Director of the proposed bank.

Other approved appointments include 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 proposed establishment of the bank comes as Nigeria seeks to strengthen its financial markets and attract greater international participation. Merchant banks typically provide specialised services such as corporate finance, investment banking, capital raising and financial advisory services.

The CBN reaffirmed its commitment to maintaining a sound and competitive financial system that supports sustainable economic growth and strengthens Nigeria’s links with global financial markets.

JPMorgan Merchant Bank Nigeria Limited will be able to commence operations only after meeting the outstanding requirements and securing a final licence from the CBN.

Reporting by TalkNaijaMedia