The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in the country following a reported $38m deposit with the apex bank.
The development paves the way for the proposed lender, which will operate as JPMorgan Merchant Bank Nigeria Limited, to proceed with the regulatory requirements for entering Nigeria’s banking sector.
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The CBN disclosed the approval in a statement issued on Friday, October 23, 2026.
However, the approval-in-principle does not authorise the proposed bank to commence operations immediately. The lender must obtain a final banking licence from the regulator before opening for business.
The approval marks a significant step in JPMorgan’s plans to establish a merchant banking presence in Nigeria.
Merchant banks generally provide specialised financial services to businesses and institutional clients, including corporate finance, investment-related services and support for large commercial transactions.
The proposed bank’s operations will be subject to the CBN’s licensing requirements and applicable banking regulations.
The apex bank’s decision follows reports that JPMorgan deposited $38m with the CBN as part of the process leading to its banking licence application.
DAILY POST had reported the deposit on October 20, three days before the announcement of the approval-in-principle.
Despite the latest development, JPMorgan Merchant Bank Nigeria Limited must secure a final banking licence before it can begin operations.
The approval-in-principle represents an initial regulatory clearance rather than confirmation that the bank has completed every licensing requirement.
Further details about the proposed bank’s launch date, management structure, services and operational plans were not provided in the report.
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The development adds another step to JPMorgan’s reported plans to establish a merchant banking presence in Africa’s largest economy.
Mariam Balogun is a contributor to Freelanews.com, covering news, business, and public affairs.
