J.P. Morgan to launch merchant bank in Nigeria before year-end

J.P. Morgan intends to inaugurate a merchant bank in Nigeria before the year 2026, pending regulatory clearance. Dapo Olagunji, the Managing Director of J.P. Morgan West Africa, revealed this at the Nigeria–Asia Financial Connectivity Dialogue in Singapore. The dialogue, organized by the Central Bank of Nigeria (CBN) in collaboration with J.P.

Morgan, Nigerian Exchange Group (NGX) and FMDQ Group, gathered investors, financial institutions, businesses and Nigerians residing or working in Asia. Olagunji's announcement was made during his welcome remarks to the attendees. The establishment of the proposed merchant bank aims to bolster J.P. Morgan's footprint in Nigeria and fortify its ties with Nigerian enterprises and the nation's capital markets.

However, the launch is contingent upon securing the necessary regulatory approval. This move by J.P. Morgan aligns with the Central Bank of Nigeria's (CBN) efforts to lure greater international involvement in Nigeria's financial markets and foster stronger bonds between local and global capital. In April 2025, Nairametrics highlighted that J.P.

Morgan was preparing to enlarge its operations in Nigeria by transforming its established Lagos representative office into a fully functional branch. According to African Intelligence, J.P. Morgan had submitted an application for a merchant banking license from the Central Bank of Nigeria (CBN). Nigeria joined J.P. Morgan's Government Bond Index in October 2012, following the establishment of a thriving domestic FGN bond market backed by market makers, a dual quote system and a wide investor base.

This development came as part of Governor Olayemi Cardoso's initiatives in Singapore ahead of the IMF–World Bank Annual Meetings in Bangkok. The CBN and GFTN also signed an agreement establishing a framework for collaboration on financial innovation, encompassing links between institutions and innovation ecosystems in Nigeria and Singapore.

At the Dialogue, Cardoso addressed Nigeria's financial-sector reforms, which were paving the way for more robust, liquid and internationally integrated markets. He emphasized that reforms to the foreign exchange market aimed to eliminate distortions, enhance transparency and bolster confidence among market participants. The governor also underscored that a stable financial system was crucial for drawing both domestic and international capital.

He further noted that stabilizing the financial system was vital for augmenting institutional engagement and strengthening connections with international markets. A panel featuring J.P. Morgan’s Chief Economist for Africa, Gbolahan Taiwo, moderated a discussion featuring the Group CEOs of NGX and FMDQ Group along with senior CBN officials.

The conversation centered on Nigeria's reform trajectory, capital creation, foreign exchange market confidence and the infrastructure necessary to sustain international participation.