LAGOS, Oct 23 – JPMorgan has received approval-in-principle from the Central Bank of Nigeria (CBN) to establish a merchant bank in the country, marking a potential expansion of the US financial group’s presence in Africa’s largest economy.
The proposed institution, JPMorgan Merchant Bank Nigeria Ltd, is expected to focus on wholesale banking, capital markets and advisory services, according to a statement issued on Friday by CBN spokesperson and head of investor relations Michael Akuka.
The approval comes as Nigerian authorities pursue reforms aimed at rebuilding investor confidence, deepening domestic financial markets and attracting foreign capital following years of currency instability and policy uncertainty.
However, the approval-in-principle represents only the initial stage of the licensing process and does not constitute a final banking licence. JPMorgan must fulfil outstanding regulatory requirements, including incorporation and operational approvals, before it can begin offering services, the central bank said.
African Economy Inc. reported on Monday that JPMorgan Chase & Co. had deposited ₦50 billion, (approximately $38 million), with the CBN in connection with its planned entry into Nigeria’s merchant banking market.
The proposed establishment would expand the US lender’s activities in a country with a large domestic market and significant demand for financial services supporting corporate financing, capital raising and investment transactions.
Merchant banking typically serves corporate and institutional clients through services such as financing, capital markets transactions and strategic financial advice, rather than focusing primarily on conventional retail banking.
JPMorgan’s proposed Nigerian operation would enter the market as the government seeks to strengthen the financial system’s capacity to mobilise domestic and international investment. Its eventual launch will depend on satisfying the remaining licensing conditions set by the CBN.
