CBN approves JP Morgan’s plan to establish merchant bank in Nigeria

The Central Bank of Nigeria (CBN) has granted American financial institution JP Morgan approval-in-principle to establish a merchant bank in Nigeria.

According to TheCable, the apex bank announced the approval on Friday, October 23, stating that the proposed institution will operate as JPMorgan Merchant Bank Nigeria Limited.

However, the bank must obtain a final operating licence before commencing business.

CBN spokesperson Michael Akuka said the approval reflects growing international confidence in Nigeria’s financial markets following recent economic reforms and banking sector recapitalisation.

The proposed bank must complete registration with the Corporate Affairs Commission and satisfy regulatory requirements.

CBN Governor Olayemi Cardoso welcomed the development, stating:

“Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth.”

The CBN also approved Adedapo Adedayo Olagunju as managing director.

JP Morgan reportedly deposited N50 billion ($38 million) with the CBN on October 20.