J.P. Morgan Plans Full Merchant Banking Debut in Nigeria by Year-End 2026
The Wall Street banking giant seeks regulatory clearance from the Central Bank of Nigeria to establish a licensed merchant banking arm to deepen its corporate finance, capital markets, and cross-border advisory footprint.
LAGOS — Global investment banking titan J.P. Morgan is finalizing preparations to launch a dedicated merchant bank in Nigeria before the end of December 2026, subject to final regulatory approvals from the Central Bank of Nigeria (CBN).
The disclosure was made by Dapo Olagunju, Managing Director and Head of West Africa at J.P. Morgan, highlighting plans to expand the firm's long-standing representative office and institutional banking presence in West Africa into a full-service merchant banking operation.
Expanding Institutional Footprint and Capital Markets Capacity
Unlike commercial banking entities focused on retail deposits, the proposed merchant banking license will allow J.P. Morgan to underwrite corporate debt and equity issuances, provide structured trade finance, and execute primary advisory mandates directly within the domestic financial system:
- Core Focus Areas: Corporate financing, primary capital market underwriting, cross-border mergers and acquisitions, asset management, and foreign exchange market structuring.
- Institutional Bridge: The expansion aims to connect Nigerian corporates, financial institutions, and sovereign entities with global institutional investors across Asia, North America, and Europe.
- Market Position: J.P. Morgan will join a select group of local merchant banking institutions, strengthening its operational capacity beyond sovereign advisory and local currency clearing services.
Macroeconomic Context and FX Stability
The announcement coincides with structural FX market reforms overseen by CBN Governor Olayemi Cardoso, who confirmed that Nigeria’s gross external reserves reached an all-time high of $55.07 billion as of October 8, 2026, alongside net reserves of approximately $46 billion.
Improved macroeconomic stability, foreign exchange market liquidity, and sustained regulatory capital reforms in Nigeria’s banking sector have restored institutional confidence, creating favorable conditions for global investment banks to establish onshore debt and equity underwriting desks.
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