JPMorgan Chase & Co. won approval-in-principle from the Central Bank of Nigeria (CBN) on Oct. 23 to establish a merchant bank, potentially expanding options for companies seeking financing and advisory services.
JPMorgan Merchant Bank Nigeria Limited remains a proposed entity. It must complete incorporation through the Corporate Affairs Commission. The CBN also requires operational and regulatory clearances before it can authorize the lender to begin business.
CBN spokesperson Michael Akuka said the planned bank is expected to focus on wholesale banking, capital markets and advisory services, Reuters reported. The CBN also approved Adedapo Adedayo Olagunju as managing director of the proposed bank.
Bloomberg reported Oct. 20, citing people familiar with the licensing process, that JPMorgan had deposited ₦50 billion with the CBN. Neither the company nor the regulator publicly confirmed the deposit in that report. The amount matches the minimum capital set in a March 2024 CBN circular for merchant banks with national authorization. The CBN's December 2024 Financial Stability Report listed the previous minimum as ₦15 billion.
The proposed bank could also add competition for specialist finance staff, though that remains a forecast. BusinessDay's Oct. 23 analysis said local lenders may face pressure to spend more to retain specialized employees. It cited no JPMorgan hiring targets, staff departures or pay changes. Duplo's report on a survey of 593 finance professionals found that 22.8% had moved abroad in the five years before the survey. Respondents worked across several finance industries, so the finding does not establish a shortage in merchant banking.
JPMorgan's proposed bank would extend an existing presence in Nigeria. Company history traces its representative-office activity there to 1982, when Chase Manhattan opened an office in the country. JPMorgan says its Lagos office serves clients through its Asset & Wealth Management and Commercial & Investment Bank businesses.
CBN Gov. Olayemi Cardoso described the regulator's objective as a financial system that is "stable, competitive and internationally connected." The CBN has not said when it will make a final licensing decision.
