Dapo Olagunju emerges as pioneer CEO of JPMorgan’s Nigeria operations as CBN grants JPMorgan approval-in-principle

The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in Nigeria, marking a significant step in the US financial giant’s plan to expand its institutional banking presence in Africa’s largest economy by population.

The proposed subsidiary, to be known as JPMorgan Merchant Bank Nigeria Limited, will focus on wholesale banking, capital markets and advisory services, according to director of the CBN’s corporate communications and investor relations department, Michael Akuka, who announced the decision on Friday, October 23, 2026.

The approval advances JPMorgan’s efforts to establish a licensed banking operation in Nigeria as authorities pursue reforms aimed at strengthening financial stability, restoring investor confidence and attracting foreign capital after years of currency volatility and policy uncertainty.

However, the preliminary approval does not authorise the proposed bank to begin operations. JPMorgan must complete the remaining regulatory requirements, including incorporation with the Corporate Affairs Commission and the necessary operational arrangements, before the CBN issues a final banking licence.

The CBN has also approved Adedapo Adedayo Olagunju as the proposed bank’s managing director.

Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were cleared as independent non-executive directors.

The latest approval follows earlier steps by JPMorgan Chase & Co. to establish a merchant banking subsidiary in the country.

Global Financial Digest in a reports published this week said the lender deposited ₦50 billion with the CBN as part of its licensing process, equivalent to about $38 million at the reported conversion rate.

The proposed operation would expand the range of services JPMorgan can potentially provide to Nigerian corporate clients and institutional investors through a locally licensed entity.

Merchant banks typically specialise in corporate finance, capital raising, investment banking and financial advisory services rather than conventional retail banking.

For Nigerian businesses, a locally licensed JPMorgan merchant bank could create additional options for arranging financing, raising capital and accessing international financial markets.

Its eventual contribution, however, will depend on the scope of its final licence, the services it offers and the scale of its operations.

The bank’s entry could also increase competition in Nigeria’s merchant banking market, where specialised financial institutions help companies structure transactions, raise debt and equity, and finance large-scale projects.

The CBN said the approval followed the implementation of its banking-sector recapitalisation programme, which was designed to strengthen the resilience and capacity of Nigerian banks.

The recapitalisation exercise requires lenders to meet higher minimum capital thresholds based on their licence categories and permitted operations.

The policy is intended to improve banks’ capacity to absorb shocks and finance larger transactions, although its longer-term impact will depend on asset quality, governance and the wider economic environment.

CBN Governor Olayemi Cardoso said the regulator wanted to build a financial system capable of supporting investment and economic growth while remaining competitive and connected to international markets.

“We are encouraged by the growing interest of international financial institutions in Nigeria. 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,” Cardoso said, according to the CBN’s statement.

The approval comes against the backdrop of wider efforts to restore macroeconomic stability after the naira’s sharp depreciation and elevated inflation weakened investor confidence and increased operating costs for businesses.

The World Bank’s April 2026 Nigeria Development Update said the country had made progress in restoring macroeconomic stability, with improvements in inflation and external and fiscal conditions.

It cautioned, however, that household incomes had yet to recover fully and poverty remained high, highlighting the challenge of translating economic stabilisation into broader prosperity.

For foreign financial institutions, the opportunity in Nigeria remains substantial, given the size of its economy, corporate financing needs and potential for deeper capital-market activity.

But the durability of renewed interest will depend on regulatory consistency, exchange-rate stability, predictable policies and the availability of investable opportunities.

JPMorgan’s approval-in-principle represents an important regulatory milestone, but it should not be confused with the commencement of banking operations or a guarantee of new investment flows into the economy.

The proposed subsidiary must complete the outstanding licensing requirements before it can begin business. The CBN has not announced a commencement date for the bank.

If the process is completed, JPMorgan Merchant Bank Nigeria Limited could strengthen links between Nigerian businesses and global capital markets, particularly in corporate financing, advisory services and capital raising.

The immediate significance is that one of the world’s largest financial institutions has moved a step closer to establishing a dedicated merchant banking operation in Nigeria.

Whether that translates into deeper financing for Nigerian companies and a broader pool of foreign capital will become clearer once the bank receives its final licence and sets out its operating plans.