JPMorgan has taken another step towards expanding its Nigerian operations, securing preliminary regulatory approval to establish a merchant bank after depositing ₦50 billion ($38 million) with the Central Bank of Nigeria on October 20. The two developments put the American financial group’s growing engagement with Nigeria’s financial system in focus.

The proposed JPMorgan Merchant Bank Nigeria Limited would give the group a new route into the country’s banking market, but the CBN’s approval-in-principle does not yet permit it to operate. A final banking licence remains outstanding, alongside incorporation and other regulatory and operational requirements.

For Nigeria, the application comes as authorities seek to attract international financial institutions, strengthen domestic banks and deepen access to global capital markets. JPMorgan’s proposed expansion adds to the international interest the CBN says it is seeing in the country’s financial sector, although the scale of the new bank’s eventual activities has not been disclosed.

Banking reforms create a new entry point

The CBN said the preliminary approval reflects growing international interest in Nigeria’s financial markets and economic prospects. It also follows the completion of the banking sector recapitalisation exercise, which the regulator says has improved the resilience and capacity of the country’s banking system.

The move comes under a reform agenda led by CBN Governor Olayemi Cardoso, which aims to strengthen financial stability, restore confidence and make Nigeria’s financial markets more competitive internationally.

“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, according to the CBN.

The regulator said it intends to sustain reforms, improve the credibility of domestic markets and create an environment in which local and international financial institutions can participate.

Licence still needed before operations begin

JPMorgan’s proposed merchant bank must satisfy several conditions before opening for business. The CBN said the company must be incorporated with the Corporate Affairs Commission and complete all applicable regulatory and operational arrangements before receiving authorisation to commence operations.

The regulator approved Adedapo Adedayo Olagunju as managing director of the proposed bank. Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors. Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.

The appointments establish the proposed bank’s initial leadership structure, but they do not remove the requirement for a final banking licence.

JPMorgan builds on its Lagos presence

JPMorgan’s latest move follows reports in 2025 that it planned to transform its Lagos representative office into a fully fledged business branch as part of a broader strategy to expand across Africa.

The merchant bank application represents a further step in that effort, subject to regulatory approval. The CBN has reiterated its commitment to a sound and competitive financial system capable of supporting sustainable economic growth and expanding Nigeria’s participation in global financial markets.