The Central Bank of Nigeria (CBN) has granted US financial services giant JPMorgan Chase approval in principle to establish a merchant bank in Nigeria, marking a potential expansion of the lender’s operations in Africa’s largest economy.
The proposed institution, JPMorgan Merchant Bank Nigeria Ltd, is expected to focus on wholesale banking, capital markets and financial advisory services, according to CBN spokesperson and Head of Investor Relations Michael Akuka, who confirmed the development on Friday, October 23, 2026.
The approval comes as Nigerian authorities pursue reforms aimed at strengthening investor confidence, deepening domestic financial markets and attracting foreign investment following years of currency instability and policy uncertainty.
Merchant banks typically provide specialised financial services to businesses, governments and institutional clients. Their activities can include corporate financing, capital raising, investment advice and support for major financial transactions.
JPMorgan’s proposed entry could expand the range of financial services available to Nigerian companies and investors, particularly those seeking assistance with capital market transactions and large scale financing.
However, the CBN stressed that the approval in principle is only the first stage of the licensing process and does not constitute a final banking licence.
JPMorgan must still satisfy regulatory requirements, including incorporation and operational approvals, before it can commence business in the country.
The development signals continued interest from international financial institutions in Nigeria’s banking and capital markets as the government and regulators work to improve the investment climate.
Nigeria’s large population, business sector and demand for financing present opportunities for financial institutions. However, investors continue to monitor foreign exchange stability, regulatory conditions and broader economic reforms when making decisions about expanding their operations.
The CBN’s preliminary approval is therefore an important step for JPMorgan, but the proposed merchant bank must complete the remaining regulatory procedures before beginning operations.
Leave a comment