The Central Bank of Nigeria (CBN) has officially granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, following the banking sector recapitalisation exercise.
The proposed institution, JPMorgan Merchant Bank Nigeria Limited, is expected to operate after fulfilling the remaining regulatory requirements and obtaining a final banking licence from the CBN.
According to Michael Akuka, director of the CBN’s corporate communications and investor relations department, the apex bank said the approval reflects growing international interest in Nigeria’s financial markets and economic prospects.
CBN said the development comes amid reforms aimed at strengthening financial stability, improving market confidence and deepening the country’s integration with global capital markets.
It added that the approval follows the completion of the banking sector recapitalisation exercise, which the bank said has strengthened the resilience and capacity of the Nigerian banking system.
The director also said the approval-in-principle represents the first stage of the regulatory approval process and does not amount to a final banking licence.
“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 bank said.
Moreover, with the approval coming amid broader reforms under Olayemi Cardoso, CBN governor, the apex chief said the goal is to strengthen financial stability, deepen financial markets and restore international confidence in the country’s financial system.
“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..
“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.”
The CBN also approved the nomination of Adedapo Adedayo Olagunju as managing director of the proposed bank.
Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
The apex bank said the proposed lender can only begin operations after the issuance of a final licence.
However, the Apex bank reiterated its commitment to maintaining a sound and competitive financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.
