The Central Bank of Nigeria (CBN) has granted approval-in-principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.

The proposed bank marks a development in Nigeria’s financial sector, reflecting international interest in the country’s financial markets and long-term economic prospects.

In a statement, the Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, said the approval came amid reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.

He said the development followed the successful implementation of the banking sector recapitalisation exercise, which had strengthened the resilience and capacity of the Nigerian banking system.

The approval also comes as the CBN pursues reforms under Governor Olayemi Cardoso to strengthen financial stability, deepen financial markets and rebuild international confidence in Nigeria’s financial system.

Speaking on the bank’s reform priorities, Cardoso said: “Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively backing 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.”

Akuka clarified that the approval-in-principle was the first stage of the regulatory process and did not constitute a final banking licence.

He said JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission and completion of the necessary operational arrangements, before receiving authorisation to commence business.

The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank.

It approved 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 proposed bank can commence operations only after the CBN issues a final licence.

The apex bank 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.