The Central Bank of Nigeria(CBN) has granted JP Morgan approval-in-principle to establish a merchant bank in Nigeria after receiving a deposit of $38 million.
CBN made this disclosure in a statement on Friday.
The apex bank said the proposed lender, to be known as JPMorgan Merchant Bank Nigeria Limited, will be required to obtain a final banking licence before commencing operations.
The approval follows the successful implementation of the banking sector recapitalisation exercise, which has strengthened the resilience and capacity of the Nigerian banking system.
The development also comes against the backdrop of the CBN’s broader reform agenda under Governor Olayemi Cardoso, focused on strengthening financial stability, deepening financial markets and rebuilding international confidence in Nigeria’s financial system.
CBN explained that the AIP represents 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, including incorporation with the Corporate Affairs Commission and completion of the necessary operational and regulatory arrangements, before receiving authorisation to commence business.
The CBN also approved the nomination of Mr. Adedapo Olagunju as Managing Director of the proposed bank.
The bank also approved Latter Kevin George, Nzelu Chinedum Izunwanne and Syed Gabriel Murtaza as non-executive directors.
Alade Sarah Omotunde, Ajayi Olukonyinsola and Adetu Seni were also approved as independent non-executive directors.
The proposed bank may commence operations only upon the CBN issuing a final licence.
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