CBN approves JP Morgan’s plan to establish merchant bank in Nigeria
The Central Bank of Nigeria (CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in the country, paving the way for the global financial institution to expand its operations in Nigeria.
The proposed bank, JPMorgan Merchant Bank Nigeria Limited, must secure a final banking licence from the CBN before it can commence operations.
The apex bank announced the approval in a statement on Friday, saying it reflected growing international interest in Nigeria’s financial markets and economic prospects.
According to the CBN, the development comes amid ongoing reforms designed to strengthen financial stability, boost investor confidence and deepen Nigeria’s integration into global capital markets.
The regulator also linked the approval to the completion of the banking sector recapitalisation exercise, which it said had enhanced the resilience and capacity of the country’s banking system.
The CBN’s Director of Corporate Communications and Investor Relations, Michael Akuka, said the approval-in-principle was only the first stage of the licensing process and did not authorise the proposed bank to begin business.
“JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and the completion of necessary operational and regulatory arrangements, before it can be authorised to commence business,” the statement said.
The CBN Governor, Olayemi Cardoso, said the regulator was working to build a financial system capable of attracting investment and supporting economic growth.
“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,” Cardoso was quoted as saying.
