In what is seen as a significant development for the country’s financial sector, the Central Bank of Nigeria (CBN) says it has granted an Approval-in-Principle (AIP) for JPMorgan, one of the world’s leading financial institutions, to set up a merchant bank.
Announcing the approval on Friday, CBN said the proposed institution to be known as JPMorgan Merchant Bank Nigeria Limited, is an indication of the growing international interest in the country’s financial markets and long-term economic prospects.
The statement by Michael Akuka, Director of the Corporate Communications and Investor Relations Department at the CBN, said the development comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
The approval follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.
The development, he added, comes against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, which focuses on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system.
Speaking on the bank’s broader reform priorities, Cardoso was quoted as saying the “objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth.
“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,” he added.
Akuka clarified that the AIP represents the first stage of the regulatory approval process and does not constitute a final banking licence, as JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before receiving authorisation to commence business.
The proposed bank requires the issuance of a final licence to commence operations.
Also, the statement noted the CBN’s approval of the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed bank, as well as Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as Non-Executive Directors.
Similarly, Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as Independent Non-Executive Directors.
The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets.
