The Central Bank of Nigeria has granted preliminary approval to global financial giant JPMorgan to establish a merchant bank in Nigeria, a development the apex bank says signals a return of international confidence in the nation’s economy.
The proposed bank, to be known as JPMorgan Merchant Bank Nigeria Limited, has received Approval-in-Principle, AIP, from the CBN. However, it must still fulfil all regulatory conditions and obtain a final operating licence before it can commence business.
The approval comes as the CBN intensifies reforms to build a stable, competitive and globally connected financial system, following the completion of the banking sector recapitalisation exercise designed to strengthen banks’ resilience and capacity to finance growth.
In a statement on Friday, the apex bank said the proposed entry of one of the world’s leading financial institutions into Nigeria’s merchant banking space reflects growing international interest in the country’s financial markets and long-term prospects.
We Are Building System That Commands Confidence – Cardoso
Reacting to the development, CBN Governor, Mr. Olayemi Cardoso, said the bank’s objective is to build a financial system that attracts investment and supports economic expansion.
“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,” Cardoso said.
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He noted that the CBN is encouraged by the rising interest of global financial institutions in Nigeria and will sustain reforms to strengthen market credibility.
“Our focus remains on sustaining the reforms, strengthening the credibility of our markets and creating an environment in which both domestic and international institutions can participate and thrive,” he added.
Final Licence Still Required
The CBN stressed that the AIP is only the first stage of the approval process. Director, Corporate Communications and Investor Relations, Mr. Michael Akuka, explained that the proposed bank must be registered with the Corporate Affairs Commission and conclude all operational and regulatory arrangements before final licensing.
Only after that can it begin operations.
As part of the process, the CBN approved Mr. Adedapo Adedayo Olagunju as Managing Director of the proposed bank, while Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
Merchant banks provide specialised services including corporate financing, investment advisory and capital raising to businesses, governments and institutional clients.
