The Central Bank of Nigeria (CBN) has granted JPMorgan Chase & Co. approval-in-principle to establish a merchant bank in Nigeria, marking a new phase in the American financial institution’s plans to expand its operations in the country.

The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, is expected to strengthen the lender’s presence in Nigeria’s institutional financial services market, subject to the completion of regulatory requirements and the issuance of a final banking licence.

The approval was announced on Friday, October 23, 2026, by Michael Akuka, the CBN’s Director of Corporate Communications and Investor Relations.

According to the apex bank, the development reflects growing international interest in Nigeria’s financial markets amid ongoing reforms aimed at strengthening financial stability, improving investor confidence and deepening the country’s integration with global capital markets.

The CBN said the approval followed the implementation of its banking sector recapitalisation programme, which is intended to strengthen the capacity and resilience of financial institutions operating in Nigeria.

The reform agenda under CBN Governor Olayemi Cardoso also seeks to build a stable, competitive and internationally connected financial system capable of supporting investment and economic growth.

Cardoso said the regulator remained committed to sustaining reforms, strengthening the credibility of Nigeria’s financial markets and creating an environment where domestic and international financial institutions could participate and grow.

The proposed merchant bank is expected to focus on wholesale banking, capital markets and financial advisory services. These activities could provide additional financial support to Nigerian businesses and institutions seeking corporate financing, capital-raising opportunities and access to international markets.

However, the CBN clarified that the approval-in-principle represents only the first stage of the licensing process and does not authorise the proposed bank to commence operations.

JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and satisfy all applicable regulatory and operational requirements before the CBN can issue a final licence.

The regulator also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed institution.

Other approved appointments include 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 form part of the proposed bank’s governance arrangements as it progresses through the regulatory approval process.

JPMorgan’s proposed entry into Nigeria’s merchant banking sector comes amid efforts by the authorities to attract foreign investment, strengthen the banking system and expand the country’s participation in international financial markets.

If the bank secures its final licence, its operations could increase competition in specialised corporate financial services and broaden the range of financing and advisory options available to Nigerian businesses.

The actual impact, however, will depend on the completion of the licensing process and the scope of the bank’s eventual operations.

The CBN reiterated its commitment to maintaining a sound, competitive and internationally connected financial system capable of supporting sustainable economic growth.