It’s the dawn of a new chapter as the
Central Bank of Nigeria, CBN, has granted JP Morgan approval-in-principle to establish a merchant bank in Nigeria after getting a deposit of $38 million.
Making this disclosure in a statement on Friday, the CBN said the proposed lender, to be known as JPMorgan Merchant Bank Nigeria Limited, will be expected to obtain a final banking licence before starting operations.
According to Michael Akuka, director of the CBN’s corporate communications and investor relations department, the apex bank said the approval reflects growing international interest in Nigeria’s financial markets and economic prospects.
CBN said the development comes amid reforms aimed at strengthening financial stability, improving market confidence and deepening the country’s integration with global capital markets.
The apex bank added that the approval follows the completion of the banking sector recapitalisation exercise, which the bank said has strengthened the resilience and capacity of the Nigerian banking system.
The director also said the approval-in-principle represents the first stage of the regulatory approval process and does not amount to a final banking licence.
“JPMorgan Merchant Bank Nigeria Limited must meet all applicable regulatory requirements, including incorporation with the Corporate Affairs Commission (CAC) and the completion of necessary operational and regulatory arrangements, before it can be authorised to commence business,” the bank added.
With the approval coming amid broader reforms under Olayemi Cardoso, CBN governor, the apex chief said the goal is to strengthen financial stability, deepen financial markets and restore international confidence in the country’s financial system.
“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 was quoted as saying..
“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 K
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Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza were approved as non-executive directors, while Alade Omotunde, Ajayi Olukonyinsola and Adetu Seni were approved as independent non-executive directors.
