Nigeria Central Bank Gives JPMorgan Initial Approval to Open Merchant Bank

Nigeria's central bank has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria. The Central Bank of Nigeria, known as the CBN, announced the decision on Friday, October 23, 2026. The proposed lender will be named JPMorgan Merchant Bank Nigeria Ltd.

The approval is the first stage of the licensing process. It does not amount to a final banking licence. JPMorgan must still meet regulatory requirements, including incorporation and operational approvals, before the proposed bank can begin business.

What the proposed bank would do

According to the CBN, the proposed bank is expected to focus on wholesale banking, capital markets and advisory services. Michael Akuka, a CBN spokesperson and the bank's head of investor relations, set out that focus in the announcement reported by Reuters.

Akuka is the director of the CBN's Corporate Communications and Investor Relations Department. He said the approval comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria's integration with global capital markets. He also linked the decision to the banking sector recapitalisation exercise.

The CBN said the move comes as Nigerian authorities push reforms to rebuild investor confidence, deepen financial markets and attract foreign capital after years of currency instability and policy uncertainty.

Leaders approved for the proposed bank

The CBN approved Adedapo Adedayo Olagunju as managing director of the proposed bank. It also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.

Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

Those approvals form part of the announcement. They do not change the status of the licence itself, which remains at the approval-in-principle stage.

What must happen next

The proposed bank may start operations only after the CBN issues a final licence. Before that, it must complete incorporation with the Corporate Affairs Commission and finish the necessary operational and regulatory arrangements.

That sequence matters for readers and for businesses watching the decision. Approval-in-principle signals that the plan can proceed to the next stage. It is not permission to open, to take business, or to operate as a licensed bank in Nigeria today.

The governor's stated goal

Olayemi Cardoso, Governor of the Central Bank of Nigeria, set out the aim behind the decision in the CBN statement reported by BusinessDay.

"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 said.

"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," he said.

For now, the decision stands as an initial nod from the regulator. The final licence, and the start of operations, depend on the steps that remain.