NIGERIA · BANKING AND FINANCE
Key Facts
- —What is happening Nigeria’s central bank gave JPMorgan approval in principle on Friday, 23 October 2026, to set up a merchant bank called JPMorgan Merchant Bank Nigeria Limited, with no final licence yet.
- —Why it matters The largest US bank is moving from a Lagos representative office toward a licensed wholesale bank in Africa’s biggest economy, a market that has recently raised bank capital rules sharply.
- —The numbers A national merchant bank needs 50 billion naira (about US$37.7 million) in capital, and a deposit of that size reportedly reached the central bank around 20 October, not confirmed as this licence’s capital.
- —Who is who The Central Bank of Nigeria is the regulator led by Governor Olayemi Cardoso; Adedapo Olagunju is the managing director named for the new bank, with six non-executive directors also approved.
- —What to watch The next steps are incorporation with the Corporate Affairs Commission, the remaining regulatory conditions and the final operating licence, none of which has a stated deadline.
- —What it means for you For US readers this is a US bank widening its Nigeria business, which may matter for Eurobond deals, dollar financing and companies that trade with Nigeria.
Nigeria’s central bank has approved a JPMorgan merchant bank in principle, the first stage of a licence. The bank may not conduct banking business or accept deposits until it holds a final licence.
Nigeria has approved a JPMorgan merchant bank in principle, the central bank said on Friday, 23 October 2026. It is the first stage of licensing, so the US lender cannot yet do banking business.
Michael Akuka, the Central Bank of Nigeria’s director of corporate communications and investor relations, announced the decision. Daily Trust, New Telegraph, Legit.ng and Blueprint all carried it on Friday.
What the Central Bank Approved
The approval covers a new company, JPMorgan Merchant Bank Nigeria Limited. Daily Trust and New Telegraph both give that name and say the central bank also cleared its board.
Adedapo Adedayo Olagunju is approved as managing director. Three non-executive directors are named: Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza.
Three independent non-executive directors complete the board: Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni. The outlets print the names in the order given here, and Legit.ng shortens the first to Kevin George.
The central bank tied the decision to its reforms for financial stability and market confidence. Daily Trust says it also cited the finished bank recapitalisation exercise, which it said strengthened the banking system.
Governor Olayemi Cardoso said the bank was “encouraged by the growing interest of international financial institutions in Nigeria,” Daily Trust reports. Legit.ng adds that he spoke of a safe, sound, competitive and globally integrated financial system.
What Approval in Principle Does Not Allow
Legit.ng quotes the central bank as calling approval in principle the first stage in the licensing process. It does not allow the bank to conduct banking business or accept deposits.
Before it can open, the company must register with the Corporate Affairs Commission, Nigeria’s company registry. It must also meet the remaining regulatory and operational conditions and then win a final banking licence.
None of the four outlets reports a deadline for any of these steps. The central bank has also not said when the final licence decision will come.
The 50 Billion Naira Capital Rule
Nigerian outlets reported on 20 and 21 October that JPMorgan had placed 50 billion naira (about US$37.7 million) with the central bank. ThisDay said it meets a key capital requirement and Nairametrics called it a final requirement, both citing Bloomberg.
ThisDay says a national merchant bank must hold at least 50 billion naira (about US$37.7 million) in capital. Blueprint links the deposit to that requirement, but the approval statement as carried by Daily Trust does not mention the deposit.
ThisDay says JPMorgan declined to comment and the central bank did not immediately respond. Anonymous sources expected a licence by the end of 2026 or early 2027, Nairametrics says.
Who Is Who
JPMorgan Chase is a US bank that ThisDay describes as the largest in the United States. It has had a representative office in Lagos for decades and advises on Nigerian sovereign and corporate Eurobonds, ThisDay says.
A merchant bank in Nigeria serves companies and institutions rather than ordinary savers. ThisDay says such a licence could extend JPMorgan into corporate finance and capital markets, but the approval lists no services.
The Central Bank of Nigeria is the country’s bank regulator and is led by Governor Olayemi Cardoso. The Corporate Affairs Commission registers companies, so its sign-off is the first practical step for the new bank.
What It Means for US Readers
A licensed bank would give JPMorgan a more direct local presence than its Lagos representative office. The approval does not yet allow that, so US companies and investors should not expect new services soon.
Nigeria has been courting foreign banks and investors while it reforms its currency market. At 1,324.60 naira per US$1 on 23 October, the 50 billion naira (about US$37.7 million) floor is small for JPMorgan.
US exporters, energy firms and funds holding Nigerian Eurobonds could one day gain dollar financing and advice. Nothing in the announcement says which products JPMorgan will offer.
Travellers and retail customers are not affected, because a merchant bank does not serve individual savers. Nothing in the reports points to any change in entry rules, card rules or foreign exchange limits for visitors.
What Is Not Known
The central bank has not said when the final licence will come. The reports give no launch date and no list of products.
It is not confirmed that the 50 billion naira (about US$37.7 million) reported on 20 October is the capital for this licence. JPMorgan’s reaction to the approval was not found, and the central bank’s own press release could not be read.
What Comes Next
JPMorgan must now incorporate the bank with the Corporate Affairs Commission and meet the remaining conditions. Only then can the central bank issue the final licence that lets it open.
The central bank says it will keep reforming to attract more international institutions. No further decision date for JPMorgan is public.
Frequently Asked Questions
What did Nigeria approve for JPMorgan?
The central bank gave approval in principle to set up JPMorgan Merchant Bank Nigeria Limited on Friday, 23 October 2026. It is the first stage of licensing and does not allow banking business yet.
Can JPMorgan take deposits in Nigeria now?
No, because approval in principle is only a first stage. Legit.ng says the bank may not conduct banking business or accept deposits until a final licence is granted.
What does a merchant bank do?
A merchant bank serves companies, institutions and governments with services such as corporate finance, treasury and capital markets deals. It is not a retail bank for ordinary savers.
How much capital does the licence need?
ThisDay says a nationally licensed merchant bank must hold at least 50 billion naira (about US$37.7 million). Nigerian outlets reported on 20 October that JPMorgan placed that sum with the central bank.
Who will run the new bank?
The central bank approved Adedapo Adedayo Olagunju as managing director. It also cleared three non-executive and three independent non-executive directors.
Sources: Daily Trust, 23 October 2026; New Telegraph, 23 October 2026; Legit.ng, 23 October 2026; Blueprint, 23 October 2026; ThisDay, 21 October 2026; Nairametrics, 20 October 2026; open.er-api.com exchange rates, 23 October 2026, 00:02 UTC (all accessed 23 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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