THE CENTRAL Bank of Nigeria (CBN) has granted Approval-in-Principle (AIP) to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.
This is according to a statement issued by Michael Akuka, the Director, Corporate Communications and Investor Relations Department of the CBN.
Akuka said that the approval signalled growing international confidence in Nigeria’s financial sector reforms and follows a successful banking sector recapitalisation.
He said that the proposed establishment of a merchant bank by one of the world’s leading financial institutions marked significant development for Nigeria’s financial sector.
According to him, it also reflects growing international interest in the country’s financial markets and long-term economic prospects.
“The development comes amid sustained reforms aimed at strengthening financial stability, improving market confidence and deepening Nigeria’s integration with global capital markets.
“The approval follows the successful implementation of the banking sector recapitalisation, which has strengthened the resilience and capacity of the Nigerian banking system.
“The development comes against the backdrop of the CBN’s broader reform agenda focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system,” he said.
Akuka said that the AIP represented the first stage of the regulatory approval process and does not constitute a final banking licence.
“JPMorgan Merchant Bank Nigeria Limited must fulfil all applicable regulatory requirements before receiving authorisation to commence business.
“These include incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements,” he said.
The Governor of CBN, Olayemi Cardoso, said the objective was to build a financial system that was stable, competitive and internationally connected; one that commands confidence and can effectively support investment and economic growth.
“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.
The News Agency of Nigeria (NAN) reports that the apex bank has approved the nomination of Mr Adedapo Olagunju as Managing Director of the proposed bank.
The CBN also approved Latter George, Nzelu Izunwanne and Syed Murtaza as Non-Executive Directors.
Sarah Alade, Ajayi Olukonyinsola and Adetu Seni were also appointed as Independent Non-Executive Directors.
The proposed bank can only commence operations after the CBN has issued it a final licence.
The CBN reaffirmed its commitment to maintaining a sound, competitive and internationally connected financial system that supports sustainable economic growth and expands Nigeria’s participation in global financial markets. (NAN)
