JPMorgan has secured approval-in-principle from the Central Bank of Nigeria (CBN) to establish a merchant bank in Nigeria, but must complete outstanding regulatory and operational requirements before receiving a final licence.
The proposed JPMorgan Merchant Bank Nigeria Limited must incorporate with the Corporate Affairs Commission and fulfil the remaining conditions before it can commence business, the CBN said on Friday, October 23, according to Channels Television.
The regulator also approved Adedapo Olagunju as the bank’s managing director, Tribune Online reported.
Michael Akuka, the CBN’s director of corporate communications and investor relations, said the proposed bank would focus on wholesale banking, capital markets and advisory services, Premium Times reported on October 25.
The approval follows the completion of the CBN’s banking sector recapitalisation exercise, which the regulator said had strengthened the resilience and capacity of Nigerian banks, according to Leadership.
Bloomberg reported on October 20, citing people familiar with the matter, that JPMorgan had deposited ₦50 billion ($38 million) with the CBN. Nairametrics and Innovation Village reported that the sum matches the minimum capital requirement for a nationally authorised merchant bank under the recapitalisation framework.
JPMorgan is targeting a final licence by the end of 2026 or early 2027, subject to regulatory approvals, BusinessDay reported, citing Bloomberg.
Olagunju, JPMorgan’s managing director for West Africa, announced the plan on October 8 at the Nigeria-Asia Financial Connectivity Dialogue in Singapore. The event was convened by the CBN in collaboration with JPMorgan, Nigerian Exchange Group and FMDQ Group, Nairametrics reported.
The approval-in-principle came about two weeks after the announcement. However, neither the CBN nor JPMorgan had publicly confirmed a date for the final licence as of October 25.
The proposed entry would expand JPMorgan’s presence in Nigeria’s wholesale banking and capital markets, where local merchant banks and commercial lenders compete for corporate finance, advisory and capital-raising mandates. Its impact will depend on the final licence and the range of services it is authorised to provide.
