One of the world’s biggest banks is moving from a Lagos office to a licensed Nigerian bank. The first approval is in, but the final licence is still to come.
The Central Bank of Nigeria (CBN) has given JPMorgan an Approval-in-Principle, or AIP, to set up a merchant bank in Nigeria. It will be called JPMorgan Merchant Bank Nigeria Limited. Michael Akuka, the CBN’s head of corporate communications, announced it on 23 October 2026. An AIP is not a final licence. The bank cannot open until the CBN issues one.
The move follows a cash deposit. Bloomberg reported this week that JPMorgan put ₦50 billion, about $38 million, with the CBN. Under the CBN’s new capital rules, a national merchant bank must hold at least that much. JPMorgan has kept an office in Lagos for decades. It has advised Nigerian governments and firms on Eurobond deals. A licence would let it do more, such as deals and money markets work.
Two steps remain. The bank must register with the Corporate Affairs Commission. It must also finish its plans to run the bank. Then the CBN can issue a final licence. Bloomberg reported that JPMorgan hopes to get it by the end of 2026 or early 2027.
The CBN also cleared the team. Adedapo Adedayo Olagunju, now head of JPMorgan West Africa, will lead the bank. The non-executive directors are Kevin George Latter, Chinedum Nzelu Izunwanne and Gabriel Murtaza Syed. The independent directors are Sarah Omotunde Alade, a former CBN deputy governor, Olukonyinsola Ajayi and Seni Adetu.
CBN Governor Olayemi Cardoso tied the move to the bank’s reform drive. “Our objective is to build a financial system that is stable, competitive and internationally connected,” he said, as Vanguard quotes him.
Why it matters: Merchant banks serve firms, not everyday savers. They handle deals, trade finance, foreign exchange and fund raising. A global name on the ground could give Nigerian firms more choice when they need big loans or help abroad. It is also a win for the CBN’s push to raise bank capital. The final licence will show how the CBN applies its own rules.
What to watch next: JPMorgan’s sign-up with the Corporate Affairs Commission, the final licence decision, the launch date and the first services on offer.
Sources: Vanguard on the CBN’s approval for JPMorgan; ThisDay on JPMorgan’s ₦50 billion deposit; AllAfrica on JP Morgan’s deposit; Arise News on the licence timeline.
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