The Central Bank of Nigeria (CBN) has granted
Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in the
country, to be known as JPMorgan Merchant Bank Nigeria Limited.
The proposed entry of one of the world's leading
financial institutions is a significant development for Nigeria's financial
sector, reflecting growing international interest in the country's markets and
long-term economic prospects.
The CBN's Director of Corporate Communications and
Investor Relations, Michael Akuka, who announced the approval, said it came
amid sustained reforms aimed at strengthening financial stability, improving
market confidence and deepening Nigeria's integration with global capital
markets. He added that the approval follows the successful completion of the
banking sector recapitalisation exercise, which has boosted the resilience and
capacity of the banking system. It also comes against the backdrop of the broader
reform agenda under CBN Governor Olayemi Cardoso.
Cardoso was quoted as saying: "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." He added that the CBN is encouraged by the growing
interest of international financial institutions in Nigeria, and that its focus
remains on sustaining the reforms, strengthening the credibility of the markets
and creating an environment where both domestic and international institutions
can participate and thrive.
Akuka explained that the AIP is only the first stage
of the regulatory approval process and is not a final banking licence. JPMorgan
Merchant Bank Nigeria Limited must meet all applicable regulatory requirements,
including incorporation with the Corporate Affairs Commission and completion of
the necessary operational and regulatory arrangements, before it can be
authorised to begin business. It may commence operations only after the CBN
issues a final licence.
The CBN also approved the nomination of Mr. Adedapo
Olagunju as Managing Director of the proposed bank. Latter Kevin George, Nzelu
Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive
directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were
approved as independent non-executive directors.
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