The Central Bank of Nigeria (CBN) has granted global financial services firm JP Morgan approval-in-principle to establish a merchant bank in Nigeria following a $38 million deposit.
The apex bank disclosed this in a statement on Friday, noting that the proposed financial institution would operate under the name JPMorgan Merchant Bank Nigeria Limited.
However, the CBN stated that the proposed bank must obtain a final banking licence before it can commence operations in the country.
The approval-in-principle represents a significant step towards JP Morgan’s planned entry into Nigeria’s merchant banking sector, although the institution is yet to receive full authorisation to begin operations.
The development follows the reported deposit of $38 million by JP Morgan with the CBN as part of the process towards securing its banking licence.
The establishment of the proposed merchant bank could strengthen JP Morgan’s presence in Nigeria’s financial services industry, particularly in areas associated with merchant banking, corporate finance and investment services.
Further details regarding the bank’s operational timeline and the scope of its services were not provided in the statement.
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