CBN Grants JPMorgan Approval To Open Banking Service in Nigeria
- The CBN has granted JPMorgan approval-in-principle to establish a merchant bank, marking a major step towards the global lender’s entry into the country’s financial sector
- The proposed bank, JPMorgan Merchant Bank Nigeria Limited, will be led by Adedapo Adedayo Olagunju as managing director
- The approval does not permit the bank to commence operations or accept deposits until it meets all regulatory requirements and secures a final licence
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Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) has approved plans by global financial services giant JPMorgan to establish a merchant bank in Nigeria, opening a new chapter in the lender’s presence in the country’s financial sector.
The proposed institution, to be known as JPMorgan Merchant Bank Nigeria Limited, has received approval-in-principle from the apex bank.
Source: Getty Images
However, the bank cannot begin operations immediately. It must satisfy outstanding regulatory requirements, complete registration with the Corporate Affairs Commission and obtain a final banking licence from the CBN.
The development was announced by Michael Akuka, the CBN’s Director of Corporate Communications and Investor Relations, who described the move as a sign of growing international interest in Nigeria’s financial sector.
CBN approves JPMorgan bank executives
Alongside the initial approval, the CBN has cleared key appointments at the proposed merchant bank.
Adedapo Adedayo Olagunju has been approved as managing director, while Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza will serve as non-executive directors.
The regulator also approved Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors, BusinessDay reports.
CBN Governor Olayemi Cardoso said the development aligns with the regulator’s efforts to build a stronger and more internationally connected financial system.
Cardoso said:
“Our aim is to have a safe, sound, competitive and globally integrated financial system that engenders trust and can support investment and growth."
He added that the CBN welcomed increasing interest from international financial institutions and remained committed to maintaining an open and competitive environment for both domestic and foreign players.
JPMorgan enters as Nigeria reforms banking sector
JPMorgan’s planned entry comes as Nigeria pushes ahead with its banking sector recapitalisation programme, which requires lenders to meet higher minimum capital requirements.
Source: UGC
The policy is intended to strengthen banks’ capacity to finance large-scale investments, withstand economic shocks and support broader economic growth.
The proposed merchant bank could further connect Nigeria’s financial system with international capital markets, although its actual impact will depend on its eventual operations and the services it provides.
The CBN stressed that approval-in-principle is only the first stage in the licensing process. It does not authorise the proposed institution to conduct banking business or accept deposits before receiving final regulatory approval.
The apex bank reiterated its commitment to implementing reforms aimed at deepening Nigeria’s links with international capital markets and supporting sustainable economic development.
Another bank begins operation in Nigeria
Earlier, Legit.ng reported that Bank78 MFB has officially commenced operations as a private digital lender in Nigeria.
The bank stated that although it is inspired by private-banking culture and mindset, it is deliberately designed for the mass-affluent everyday Nigerian, offering a secure and premium digital banking experience.
Director of Sales at Bank78 MFB, Eberechukwu Dikse, described the bank’s corporate philosophy as “prestige made accessible,” noting that the concept goes beyond aesthetics.
Source: Legit.ng
