The Central Bank of Nigeria, CBN, has granted American financial services giant, JP Morgan, approval-in-principle to establish a merchant bank in Nigeria, in a move that could strengthen foreign participation in the country’s financial services industry.
The approval comes days after JP Morgan deposited N50 billion (about $38 million) with the CBN on October 20, 2026, underscoring the American financial giant’s growing interest in Nigeria’s financial market.
The proposed lender, JPMorgan Merchant Bank Nigeria Limited, is expected to leverage its parent company’s global reach, financial strength and investment banking expertise. Its entry could position the group among the biggest foreign banking players in Nigeria, although its eventual market standing will depend on its capital base and operations, according to financial experts.
The CBN has clarified that the approval-in-principle is not a final banking license. The proposed bank must meet regulatory requirements, including incorporation with the Corporate Affairs Commission, CAC, before it can commence operations.
The apex bank has approved Adedapo Adedayo Olagunju as managing director of the proposed bank. It also approved the nominations of non-executive and independent non-executive directors.
JP Morgan’s proposed entry, experts insist, could deepen competition in corporate finance and capital markets, expand access to international investment opportunities and reinforce foreign participation in Nigeria’s financial system.
The development follows reports in 2025 that JP Morgan was considering expanding its Nigerian presence by transforming its Lagos representative office into a fully fledged business branch.
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