JPMorgan has secured preliminary approval from the Central Bank of Nigeria (CBN) to establish JPMorgan Merchant Bank Nigeria Limited, advancing the United States financial institution’s plans to expand its banking operations in the country.
The approval-in-principle (AIP), announced by the CBN on October 23, 2026, allows the proposed bank to proceed with the remaining stages of the licensing process but does not authorise it to commence operations.
According to Michael Akuka, Director of the CBN’s Corporate Communications and Investor Relations Department, the approval aligns with ongoing reforms aimed at strengthening financial stability, deepening domestic financial markets and improving Nigeria’s integration with global capital markets.
The development comes after the completion of Nigeria’s banking sector recapitalisation exercise, which the CBN said was designed to strengthen the resilience and capacity of the financial system.
CBN Governor Olayemi Cardoso said the regulator remained committed to building a financial system capable of supporting investment, economic growth and greater participation by international financial institutions.
“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,” Cardoso said.
He added that the apex bank would sustain reforms, strengthen market credibility and create an environment in which domestic and international financial institutions could participate and grow.
Alongside the preliminary approval, the CBN approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed merchant bank.
The regulator also 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.
JPMorgan Merchant Bank Nigeria Limited must still satisfy the CBN’s outstanding regulatory requirements, including incorporation with the Corporate Affairs Commission and the establishment of the necessary operational arrangements, before receiving a final banking licence.
The approval advances the bank’s efforts to establish a merchant banking presence in Nigeria, where it has maintained a representative office in Lagos.
The proposed expansion would allow the bank to convert its longstanding Lagos representative office into a fully operational business branch, broadening the range of services available to Nigerian corporate clients.
The latest development follows preparations reported in April 2025, when JPMorgan was considering applying for a merchant banking licence as part of its broader expansion strategy in Africa.
JPMorgan Chase & Co., the largest bank in the United States by assets, has a global presence across investment banking, commercial banking, asset management and financial services.