CBN grants JPMorgan preliminary approval for merchant bank

The Central Bank of Nigeria (CBN) has granted JPMorgan a preliminary approval to set up a merchant bank in Nigeria, allowing the American financial services giant to expand its institutional activities in the country. The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, must meet regulatory standards and receive a final banking license from the apex bank before starting operations.

CBN Director of Corporate Communications and Investor Relations, Michael Akuka, announced the decision, highlighting the country's growing appeal to international financial players. The move follows the implementation of the banking sector recapitalisation programme and other reforms aimed at enhancing financial stability, confidence, and integration with global capital markets.

JPMorgan, a leading global financial institution, is set to bolster its presence in Nigeria through this proposed merchant bank, which would focus on corporate finance, investment banking, capital raising, and advisory services. However, the approval does not yet permit the commencement of banking operations. The CBN emphasized that the approval-in-principle represents the initial stage of the regulatory authorisation process, and JPMorgan must complete incorporation with the Corporate Affairs Commission and satisfy all operational and regulatory requirements before obtaining a final licence.

The CBN Governor, Olayemi Cardoso, stated that the reform agenda aims to build a stable, competitive, and internationally connected financial system that attracts investment and supports economic growth.