CBN Grants JPMorgan Approval-in-Principle to Set Up Merchant Bank in Nigeria
The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in the country, to be known as JPMorgan Merchant Bank Nigeria Limited. According to Daily Trust, the CBN announced the approval on Friday, October 23, 2026, and stressed that it is not yet a final banking licence.
Key details of the approval
Daily Trust reports that Michael Akuka, the CBN’s director of corporate communications and investor relations, said the approval comes amid sustained reforms aimed at strengthening financial stability and deepening Nigeria’s links with global capital markets. Daily Trust adds that the CBN will continue implementing reforms to strengthen the credibility of Nigeria’s financial markets.
TheCable says Akuka described the approval as a reflection of growing international interest in Nigeria’s financial markets. He said it follows the completion of the banking sector recapitalisation exercise, which the CBN says has strengthened the resilience and capacity of the banking system.
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank, according to Tribune Online and Nairametrics. TVC News adds that the regulator cleared Konyin Ajayi for the board.
What JPMorgan must still do
Blueprint reports that the approval-in-principle is the first stage of the regulatory process and does not exempt JPMorgan from the remaining conditions for a final operating licence. The CBN said the new bank must meet all applicable requirements, including incorporation with the Corporate Affairs Commission and completion of necessary operational and regulatory arrangements, before it can start business.
Blueprint adds that the approval does not guarantee the bank will begin operating within any projected timeframe.
Background and context
Nairametrics describes JPMorgan Chase & Co. as the largest bank in the United States by assets. TVC News says JPMorgan’s activities in Nigeria have largely been conducted through a Lagos representative office. TheCable reports that in 2025 JPMorgan was said to be planning to convert that office into a full business branch, as part of a wider push to expand across Africa.
TheCable also reports that on October 20, the American bank deposited N50 billion, about $38 million, with the CBN. Blueprint describes the deposit as part of its application to establish the merchant bank, citing earlier reports.
Tribune Online says the move is expected to deepen Nigeria’s financial markets and strengthen links with international capital markets.
Quick timeline:
- 2025: JPMorgan reportedly plans to upgrade its Lagos representative office, per TheCable.
- October 20, 2026: It deposits N50 billion with the CBN, per TheCable.
- October 23, 2026: CBN announces approval-in-principle.
What happens next
The bank still has to be incorporated with the Corporate Affairs Commission and meet the CBN’s remaining conditions before a final licence can be issued. The sources reviewed do not give a date for a final licence or for the start of operations.
JPMorgan had not commented in the sources reviewed. Readers should watch the CBN and JPMorgan for official announcements on licensing and launch timelines.
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