The Central Bank of Nigeria (CBN) on Oct. 23 granted JPMorgan approval-in-principle to establish a proposed Nigerian merchant bank and approved Olukonyinsola Ajayi’s nomination as an independent non-executive director, advancing the lender’s local expansion.
The proposed subsidiary, JPMorgan Merchant Bank Nigeria Limited, is not yet licensed to serve customers. JPMorgan must complete registration with the Corporate Affairs Commission, prepare operational arrangements and meet the CBN’s other conditions. A full license is required before it can begin business.
The CBN placed the approval within a broader effort to recapitalize banks and update the sector’s rules. It said the policy aims to reinforce Nigeria’s financial system, build investor confidence and strengthen links with international capital markets.
CBN Governor Olayemi Cardoso described the goal as a financial system that is “stable, competitive and internationally connected,” and able to support investment and economic growth. He also pointed to greater interest from international institutions and said the regulator aims to keep markets credible and open to local and foreign participants.
Ajayi is a Senior Advocate of Nigeria and a partner at Olaniwun Ajayi LP, according to a Dangote Fertiliser profile. It says he has more than four decades of legal experience, including work in banking, project finance, capital markets, mergers and acquisitions. The profile also says he chaired the Capital Market Master Plan Implementation Committee. It lists a Ph.D. from the University of Cambridge, an LL.M. from Harvard University and an LL.B. from the University of Ife.
Bloomberg previously reported JPMorgan’s application for a Nigerian merchant banking license, which EconoTimes covered in an earlier report on the licensing effort. The CBN must still decide whether to issue a full license after the remaining conditions are met; no decision date was provided.
