The Central Bank of Nigeria (CBN) has granted JPMorgan approval-in-principle to establish a merchant bank in the country following a $38m deposit by the global financial institution.

The proposed bank, JPMorgan Merchant Bank Nigeria Limited, must secure a final banking licence from the apex bank before it can begin operations.

The CBN disclosed the development in a statement on Friday, October 23, 2026, following the bank’s move to meet an initial requirement for its proposed entry into Nigeria’s banking sector.

The approval-in-principle represents an early stage in the licensing process and does not authorise the proposed institution to commence banking activities immediately.

The development follows reports that JPMorgan deposited $38m with the CBN on October 20 as part of preparations for its planned Nigerian banking operations.

JPMorgan is one of the world’s major financial services institutions, with operations spanning investment banking, financial markets, asset management and other financial services.

Its proposed merchant bank would mark a further step in its presence in Nigeria’s financial services market, subject to the completion of the regulatory approval process.

The final licence will be required before JPMorgan Merchant Bank Nigeria Limited can begin operations.