Global financial services firm J.P. Morgan is preparing to commence merchant banking operations in Nigeria before the end of 2026, subject to regulatory approval.
Dapo Olagunji, the firm's managing director for West Africa, disclosed this on October 8 at the Nigeria–Asia Financial Connectivity Dialogue in Singapore.
The event was convened by the Central Bank of Nigeria (CBN) in partnership with J.P. Morgan, Nigerian Exchange Group (NGX) and FMDQ Group, according to a statement issued on Thursday.
The planned entry into merchant banking is expected to expand J.P. Morgan's presence in Nigeria as the country intensifies efforts to deepen its financial markets and attract international capital.
The announcement coincided with engagements by CBN Governor Olayemi Cardoso with financial institutions and market stakeholders in Singapore ahead of the IMF-World Bank annual meetings in Bangkok.
The proposed establishment of the bank comes amid renewed interest in Nigeria's domestic debt market following the country's inclusion in a new emerging markets bond index developed by J.P. Morgan.
On September 15, the financial institution announced that Nigeria would be included in its Government Bond Index–Emerging Markets Edge (GBI-EM Edge), with a weighting of 7.4 per cent.
The index, which began operating at the end of September, tracks local-currency government bonds across emerging and frontier markets, helping international investors assess opportunities in participating countries.
Nigeria's inclusion is expected to raise the profile of its local-currency government securities among international fixed-income investors and potentially improve access to foreign portfolio investment.
With its 7.4 per cent weighting, Nigeria is set to account for a substantial share of the new benchmark, providing greater international visibility for its government bond market.
The latest development also marks a notable shift in the relationship between J.P. Morgan and Nigeria's debt market, nearly 11 years after the country was removed from the firm's Government Bond Index–Emerging Markets in 2015.
The planned merchant banking operations, alongside the country's inclusion in the new index, could strengthen links between Nigeria's financial system and international capital markets.
For Nigeria, attracting major international financial institutions is part of broader efforts to deepen market liquidity, expand investment opportunities and strengthen the country's position as a destination for global capital.
However, the proposed launch of J.P. Morgan's merchant bank will depend on the completion of regulatory processes, with the firm targeting commencement before the end of 2026.
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