JPMorgan Chase has secured preliminary regulatory approval to establish a merchant bank in Nigeria and appointed former Central Bank of Nigeria (CBN) acting governor Sarah Omotunde Alade as an independent non-executive director of the proposed institution.

The CBN announced the approval-in-principle on Friday, October 23, 2026, clearing the way for the American financial services giant to advance plans for JPMorgan Merchant Bank Nigeria Limited. However, the proposed bank must satisfy outstanding regulatory requirements and obtain a final operating licence before commencing business.

Alade, a former CBN deputy governor who served as acting governor in 2014, joins the proposed bank’s board as JPMorgan seeks to expand its institutional banking presence in Africa’s largest economy.

The CBN also approved Adedapo Adedayo Olagunju as the proposed bank’s managing director, alongside other board appointments, according to reports of the regulatory decision.l

The proposed merchant bank plans to focus on wholesale banking, capital markets and financial advisory services, according to the CBN announcement.

These services typically include financing for businesses and institutions, assistance with raising capital and advice on major financial transactions. The proposed operation would expand JPMorgan’s presence in Nigeria beyond its existing representative office in Lagos.

The preliminary approval does not mean the bank can immediately begin offering these services. The CBN said the institution must complete the remaining regulatory steps, including incorporation with the Corporate Affairs Commission and compliance with applicable operational requirements, before a final licence can be issued.

Alade spent more than two decades at the CBN, where she held senior positions before becoming deputy governor in charge of economic policy in 2007. She served as acting governor in 2014 and retired from the apex bank in March 2017.

Her career has included work in monetary policy, economic research, banking operations and public finance. She later served as special adviser to former President Muhammadu Buhari on finance and the economy.

Her appointment brings experience in monetary policy and financial-sector administration to the proposed bank’s board, although the institution’s eventual activities will depend on its final licence and regulatory conditions.

JPMorgan’s proposed Nigerian merchant bank comes amid efforts by the Federal Government and the CBN to strengthen the banking sector, improve market confidence and attract international investment.

The CBN has said its regulatory reforms are intended to build a more stable and competitive financial system with stronger connections to international capital markets.

JPMorgan has maintained a presence in Nigeria for decades through its representative operations. Establishing a locally licensed merchant bank would mark a further step in its engagement with Nigerian businesses and financial institutions.

The proposed institution’s launch, however, remains subject to final regulatory approval.