Major US bank JPMorgan Names Key Reasons for Expanding Its Banking Business in Nigeria
- JPMorgan says Nigeria’s recent economic reforms and the CBN’s banking regulations influenced its decision to expand its operations in the country
- The bank has deposited N50 billion with the CBN and received approval-in-principle to establish a merchant bank in Nigeria
- JPMorgan hopes to obtain its final banking licence by December 2026 or early 2027 before starting operations
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Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Dapo Olagunju, managing director of J.P. Morgan West Africa, has attributed the American bank's decision to expand its operations in Nigeria to recent economic reforms and the quality of banking regulations introduced by the Central Bank of Nigeria (CBN).
Olagunju said the reforms implemented over the past three to four years had improved the investment environment and influenced the bank's decision to establish a merchant banking business in the country.
Source: UGC
He spoke during a panel discussion on attracting investment to Nigeria at the 32nd Nigerian Economic Summit in Abuja on Tuesday, October 27, 2026.
According to him, the scale and impact of the recent reforms represent a significant shift in Nigeria's economic environment.
"The level of reforms and the impact of the reforms is why we are expanding in Nigeria. We are also very impressed with the quality of banking regulations at the central bank," he said.
Why JPMorgan is expanding in Nigeria
Olagunju said the bank's decision to deepen its presence in Nigeria reflected its confidence in the country's evolving business environment.
He added that JPMorgan was backing its assessment of the Nigerian economy with a tangible investment commitment.
"We are putting our money where our mouth is," he said.
The executive also commended the CBN's regulatory standards, describing the institution as "very well professionally run".
His comments come as the bank advances plans to establish a merchant banking business in Nigeria, signalling a broader commitment to the country's financial services industry.
JPMorgan deposits N50bn with CBN
The CBN granted approval-in-principle for the proposed JPMorgan Merchant Bank Nigeria Limited on October 23, bringing the bank a step closer to establishing a licensed merchant banking operation in the country.
As part of the licensing requirements, JPMorgan has deposited N50 billion, equivalent to approximately $38 million, with the central bank.
However, the approval-in-principle does not authorise the proposed bank to commence operations. It must obtain a final banking licence from the CBN before launching its services.
The bank is targeting final approval by December 2026 or early 2027, although the timeline remains subject to the regulator's decision.
What the proposed merchant bank means
The proposed merchant banking licence would allow JPMorgan to expand beyond its existing representative office in Lagos and provide a wider range of services to Nigerian businesses and institutions, subject to regulatory approval.
The development could strengthen the bank's involvement in Nigeria's financial services sector, particularly as businesses and investors seek access to international financial expertise and banking services.
Source: Getty Images
Olagunju's remarks suggest that recent economic reforms and the CBN's regulatory framework have played an important role in shaping JPMorgan's expansion plans.
The bank's next major step is to secure final regulatory approval before commencing operations under its proposed merchant banking business.
JP Morgan appoints ex-CBN acting governor as director
Meanwhile, Legit.ng earlier reported that JP Morgan appointed former CBN acting governor Sarah Alade as an independent director of its proposed Nigerian merchant bank.
Alade once served as acting governor of the CBN in 2014 following the suspension of then governor Sanusi Lamido Sanusi.
Alade brings decades of experience, including 24 years at the CBN and service as Buhari’s economic adviser.
Source: Legit.ng
