The Central Bank of Nigeria (CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in the country, marking a step towards expanding the US financial giant’s operations in Nigeria.
The proposed lender, to be known as JPMorgan Merchant Bank Nigeria Limited, must obtain a final banking licence before commencing operations, the CBN said in a statement on Friday.
The approval follows JP Morgan’s deposit of N50 billion, equivalent to about $38 million, with the apex bank on October 20 as part of its application for a merchant banking licence.
The CBN said the approval-in-principle was the first stage of the licensing process and did not authorize the proposed bank to begin operations.
The bank must fulfill all regulatory requirements, including incorporation and the necessary operational arrangements, before receiving its final licence.
The move is expected to expand JP Morgan’s presence in Nigeria’s financial sector, allowing it to pursue broader wholesale banking, capital markets, and advisory services, subject to regulatory approval.
