BREAKING: CBN grants JP Morgan approval for merchant bank

The Central Bank of Nigeria (CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in Nigeria.

Director of the CBN’s Corporate Communications and Investor Relations Department, Michael Akuka, in a statement on Friday, said the proposed bank will be able to commence operations only after meeting the regulator’s requirements and obtaining a final banking licence.

The CBN also approved the nomination of Adedapo Adedayo Olagunju as Managing Director of the proposed merchant bank.

The regulator further approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.

Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni as independent non-executive directors.

The regulator said the process forms part of its commitment to maintaining a sound, competitive and internationally connected financial system.

The approval follows earlier steps by JPMorgan Chase & Co., the largest bank in the United States by assets, to establish a merchant banking presence in Nigeria.

JPMorgan had deposited N50 billion, equivalent to $38 million, with the CBN as its application for a merchant banking licence progressed.

The bank plans to convert its longstanding Lagos representative office into a fully operational business branch, expanding the range of services it can provide to Nigerian corporate clients.