The US banking giant has received approval in principle for JPMorgan Merchant Bank Nigeria Limited and cleared seven board nominees — five of them Nigerians — but a final licence is still pending.

JPMorgan Chase is edging closer to launching its first merchant banking subsidiary in Africa after the Central Bank of Nigeria granted approval in principle to JPMorgan Merchant Bank Nigeria Limited.

The move marks a significant expansion of the US bank’s presence in Nigeria, where it has until now operated through a representative office in Lagos. Once fully licensed, the subsidiary will provide corporate finance, structured finance, treasury services and access to capital markets for corporations, financial institutions and institutional investors.

As part of the licensing requirements, JPMorgan deposited N50 billion — approximately $38 million — with the CBN to meet the minimum capital requirement for a nationally licensed merchant bank.

The approval in principle, however, does not permit the bank to begin operations. JPMorgan must first satisfy all outstanding regulatory and operational requirements before the CBN can issue a final banking licence. The bank had earlier indicated it planned to begin operations before the end of 2026, subject to final approval.

Seven Board Nominees Cleared

Alongside the approval in principle, the CBN cleared seven board nominees for the proposed bank, five of whom are Nigerians with experience spanning banking, monetary policy, electronic trading, corporate law and multinational business leadership.

Adedapo Adedayo Olagunju — Managing Director
Dapo Olagunju has been named Managing Director of the proposed merchant bank. He has headed JPMorgan’s West Africa business since 2018, overseeing relationships with major corporations and financial institutions across the region.

He previously held senior treasury and global markets roles at Access Bank and began his career at Investment Banking & Trust Company, now part of Stanbic IBTC. Olagunju holds a BSc in Banking and Finance from Ogun State University, now Olabisi Onabanjo University, and an MBA from the University of Oxford. He is a Fellow of the Institute of Chartered Accountants of Nigeria and an alumnus of Harvard Business School’s General Management Programme.

Chinedum Nzelu Izunwanne — Non-Executive Director
Chinedum Nzelu Izunwanne, popularly known as Chi Nzelu, is a senior JPMorgan executive and the bank’s Global Head of Macro Electronic Trading. He joined the bank in London in 2005 as an FX e-commerce analyst and rose to Managing Director in 2016.
His experience in electronic trading, automation and risk management is expected to support the board’s oversight of the proposed bank’s technology and trading operations.

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Sarah Omotunde Alade — Independent Non-Executive Director
Sarah Alade brings experience in monetary policy, financial regulation and public finance. She served as Deputy Governor of the Central Bank of Nigeria from 2007 to 2017 and briefly as Acting Governor in 2014.

In 2019, she was appointed Special Adviser to the President on Finance and the Economy, broadening her experience in economic policy and public-sector financial management.

Olukonyinsola Ajayi — Independent Non-Executive Director
Olukonyinsola Ajayi, widely known as Konyin Ajayi, is a Partner at Olaniwun Ajayi LP with considerable experience in banking, project finance, capital markets, mergers and acquisitions, energy and infrastructure.

He has advised on several major transactions, including Airtel Africa’s $750 million dual listing and Seplat Petroleum’s acquisition of Eland Oil and Gas. His legal and transactional expertise is expected to strengthen the bank’s corporate governance and strategic oversight.

Seni Adetu — Independent Non-Executive Director
With more than three decades of corporate leadership experience, Seni Adetu brings a background in business management and corporate governance to the board.

He previously served as Managing Director and Chief Executive Officer of Guinness Nigeria and as Chief Executive Officer of East African Breweries. His earlier career included senior positions at John Holt, Coca-Cola and Diageo. Adetu is the Founder and Group Chief Executive Officer of First Primus West Africa, and has served on the boards of FBN Holdings and Fidelity Bank.

Why It Matters

The proposed merchant bank would mark a major milestone in JPMorgan’s Nigerian operations, representing a shift from an existing representative office to a locally licensed banking subsidiary — subject to final regulatory approval.

The development also signals confidence in Nigeria’s financial services sector at a time when the CBN is implementing reforms aimed at strengthening financial stability, deepening domestic capital markets and restoring international investor confidence.

For the bank, the licence is not yet in hand: operations remain contingent on the CBN’s final approval.