The Central Bank of Nigeria (CBN) has granted JPMorgan an approval-in-principle to set up JPMorgan Merchant Bank Nigeria Limited, taking the American lender a step closer to a full banking presence in Africa’s largest economy.
The approval was announced by Michael Akuka, the CBN’s Director of Corporate Communications and Investor Relations, and reported by Nairametrics on Friday. It is only an initial stage of licensing. The bank cannot begin business until it satisfies further regulatory requirements, including incorporation with the Corporate Affairs Commission, and obtains a final banking licence.
The CBN linked the decision to the completed banking sector recapitalisation exercise and to the reform agenda of its Governor, Olayemi Cardoso. Cardoso said the objective was to build “a financial system that is stable, competitive and internationally connected.”
Alongside the approval-in-principle, the central bank cleared the proposed board of the new institution. It approved the nomination of Adedapo Adedayo Olagunju as managing director. Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The decision follows a report earlier this week that JPMorgan had put money behind its application. Nairametrics reported on October 20, citing Bloomberg and people familiar with the matter, that JPMorgan Chase & Co. had deposited N50 billion (about $38 million) with the CBN. The sources described the deposit as one of the final regulatory requirements for obtaining approval. The report noted that the CBN makes the final decision and that success was not guaranteed.
ThisDay, also citing Bloomberg, reported that the N50 billion matches the minimum paid-up capital that nationally authorised merchant banks must hold under the CBN’s recapitalisation framework. Bloomberg’s sources said JPMorgan expected to receive its licence by the end of 2026 or early 2027, subject to regulatory approval. ThisDay reported that JPMorgan declined to comment and that the CBN had not immediately responded to Bloomberg’s request.
JPMorgan, which Nairametrics describes as the largest US bank by assets, currently operates through a representative office in Lagos. The office offers a limited presence compared with a full licence. ThisDay reported that the bank has advised successive Nigerian governments and major companies on Eurobond issuances and other transactions through that office.
A merchant banking licence would let the bank go beyond advisory and asset management work. According to Nairametrics, it would be able to offer additional banking services, including dollar-denominated loans for large corporations. The bank plans to convert the Lagos office into a fully operational business branch. ThisDay said the licence could extend its activities into corporate finance, treasury services and capital markets, depending on the scope of the approval.
The newspaper linked the move to Nigeria’s foreign exchange reforms and efforts to restore investor confidence, while noting that currency volatility and other economic risks remain. It also suggested the entry could sharpen competition in wholesale banking for multinationals, large domestic firms, financial institutions and government-related entities.
JPMorgan has been building out its senior team across the region. Nairametrics named Edward Bell as head of investment banking for sub-Saharan Africa, Sailepu Montet as head of the Kenya office and Michael Ahonzo Avou as overseer of operations in Ivory Coast.
Nairametrics also reported in April 2025 that the bank was preparing to apply for the licence as part of its wider push into Africa.
