JP Morgan MD Lauds CBN Reforms

The Managing Director of JPMorgan West Africa, Dapo Olagunju, has stated that the global financial services provider decision to expand to Nigeria was not unconnected with the various economic reforms in the country, particularly in the financial sector.

According to Olagunju, the quality of the banking regulation by the Central Bank of Nigeria, CBN, attracted JP Morgan to invest in the country.

‘’We are also very impressed with the quality of banking regulations at the central bank,” he said.

Olagunju was appointed last week alongside other top executives to oversee its operations in the sub-region, after the US financial firm deposited N50 billion with the CBN to secure a banking license to operate as a merchant bank in the country.

Key financial industry players, citing Bloomberg, said the deposit with the Nigerian apex banking regulator was equivalent to $38 million, and is part of the requirements to start a merchant banking operation in the country, hinting also that the CBN will only finalize the process by December this year.

But sources in the Nigerian regulator told the magazine that the bank could be allowed to proceed with its services in the Nigerian market in the first or second quarter of next year, to coincide with the new financial year.

”We are looking at January, the beginning of a new financial year or thereabout, depending on what the management decides. The most important thing is that they have a provisional license to operate,” the source said on Wednesday.

Once the company receives the nod from the CBN, sources said its operations will be expanded beyond Lagos where it has operated a representative office for years.

Apart from Olagunju who was appointed to oversee the West Africa operations of the bank, others appointed last week by its management include Michael Ahonzo Avou to oversee operations in Ivory Coast, and Sailepu Montet appointed to head the Kenya office of the bank.