The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan Chase & Co. to establish a merchant bank in Nigeria, marking another step in the American banking giant’s efforts to expand its operations in Africa’s largest economy.
The approval was announced on Friday, October 23, 2026, in a statement obtained by TechMedia Africa which was issued by Michael Akuka, Director of the Corporate Communications and Investor Relations Department at the CBN. The proposed bank will operate as JPMorgan Merchant Bank Nigeria Limited.
The development comes just three days after TechMedia Africa reported that JPMorgan had deposited ₦50 billion ($38 million) with the CBN as part of the requirements for securing a merchant banking license in Nigeria.
The deposit meets the minimum capital requirement for a nationally authorized merchant bank under the CBN’s banking recapitalization framework, although the American financial institution must still satisfy other regulatory conditions before commencing operations.
How banking reforms are shaping JPMorgan’s entry
JPMorgan’s approval comes as Nigeria implements reforms designed to strengthen its banking system, improve investor confidence and attract greater participation from international financial institutions.
According to the CBN, the decision reflects progress made under its financial sector reform agenda, particularly the banking recapitalization exercise aimed at improving the capacity of Nigerian banks to withstand financial shocks and support economic growth.
The regulator also linked JPMorgan’s planned entry to efforts to deepen Nigeria’s integration with international capital markets, where global financial institutions play a significant role in facilitating investment and cross-border transactions.
CBN Governor Olayemi Cardoso said the growing interest from foreign financial institutions reflects the importance of maintaining a stable and competitive financial environment.
“We are encouraged by the growing interest of international financial institutions in Nigeria. Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive.”
Despite the approval, JPMorgan has not yet secured a full banking license. The approval-in-principle represents the first stage of the licensing process and allows the institution to proceed with the necessary preparations for establishing its Nigerian banking subsidiary.
These include incorporating JPMorgan Merchant Bank Nigeria Limited with the Corporate Affairs Commission (CAC), putting the required operational structures in place and satisfying outstanding regulatory conditions.
Only after completing these processes and obtaining final authorization from the CBN can the proposed merchant bank commence operations.
CBN approves JPMorgan’s proposed leadership
Alongside the preliminary license, the CBN has approved the management and board nominations for the proposed bank, providing an initial leadership structure as JPMorgan progresses towards full regulatory authorization.
Adedapo Adedayo Olagunju was approved as Managing Director of JPMorgan Merchant Bank Nigeria Limited, positioning him to oversee the establishment and eventual operations of the Nigerian subsidiary.
The regulator also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as Independent Non-Executive Directors.
The appointments are part of the governance arrangements required for the proposed institution, which must demonstrate regulatory compliance and operational readiness before receiving permission to begin banking activities.
What JPMorgan’s expansion means for its Nigerian operations
JPMorgan already has a presence in Nigeria through its representative office in Lagos, but establishing a licensed merchant bank would mark an expansion of its activities in the country’s financial services sector.
Unlike commercial banks, which provide everyday banking services to individuals and businesses, merchant banks primarily focus on corporate and institutional clients, offering services such as investment banking, corporate finance, financial advisory and capital market transactions.
A licensed merchant banking operation would therefore provide JPMorgan with a regulated platform to pursue a broader range of financial activities in Nigeria, subject to the permissions attached to its eventual license.
The proposed expansion also comes as JPMorgan strengthens its presence across Africa, seeking opportunities in corporate banking, trade finance, payments and investment-related services.
For now, however, the bank’s entry into Nigeria’s merchant banking sector remains conditional on completing the licensing process, with the CBN reiterating that operations can begin only after a final license has been issued.