The Central Bank of Nigeria has granted approval-in-principle to JPMorgan to establish a merchant bank in Nigeria, marking a significant step towards the expansion of the American financial institution’s operations in the country.

The proposed bank, to be known as JPMorgan Merchant Bank Nigeria Limited, will operate subject to meeting regulatory requirements and the apex bank issuing a final banking licence.

In a statement issued on Friday, the Director of the Corporate Communications and Investor Relations Department at the CBN, Michael Akuka, announced the approval, describing it as a reflection of growing international interest in Nigeria’s financial sector.

The statement said, “The Central Bank of Nigeria has granted Approval-in-Principle to JPMorgan to establish a merchant bank in Nigeria, to be known as JPMorgan Merchant Bank Nigeria Limited.”

The CBN explained that the development followed the implementation of its banking sector recapitalisation programme and other reforms intended to strengthen financial stability, improve market confidence and deepen Nigeria’s integration with global capital markets.

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

Its proposed merchant banking subsidiary would expand its institutional presence in Nigeria, although the approval does not yet authorise the commencement of banking operations.

Merchant banks primarily provide specialised financial services, including corporate finance, investment banking, capital raising and advisory services, rather than conventional retail banking services.

The apex bank clarified that approval-in-principle represented only the first stage of its regulatory authorisation process.

Akuka explained that JPMorgan Merchant Bank Nigeria Limited must complete its incorporation with the Corporate Affairs Commission and satisfy all applicable operational and regulatory requirements before receiving a final licence.

The statement emphasised that the proposed institution could commence operations only after the CBN had issued the necessary final authorisation.

Speaking on the development, the CBN Governor, Olayemi Cardoso, said the bank’s reform agenda was aimed at establishing a financial system capable of attracting investment and supporting economic growth.

“Our objective is to build a financial system that is stable, competitive and internationally connected, one that commands confidence and can effectively support investment and economic growth,” Cardoso said.

He added that the interest shown by international financial institutions reflected the importance of sustaining reforms and strengthening confidence in Nigeria’s financial markets.

The CBN also announced its approval of Adedapo Olagunju as the proposed bank’s Managing Director.

Other approved appointments include Latter George, Nzelu Izunwanne and Syed Murtaza as Non-Executive Directors.

Alade Sarah Omotunde, Ajayi Olukonyinsola, and Adetu Seni were approved as Independent Non-Executive Directors.

The sharp rise in international crude oil prices could trigger another increase in petrol prices in Nigeria, with Brent crude climbing to $115.18 per barrel on Friday amid growing fears of renewed military strikes on Iran and further disruptions to global oil supplies.

The latest rally in crude prices comes as Dangote Petroleum Refinery and other depot owners sell petrol at N1350 at their gantries.

A further increase in the cost of crude could put additional pressure on domestic petrol prices, with marketers facing higher replacement costs and the possibility of passing the increases on to consumers.

According to Oilprice.com, Brent crude climbed to a five-month high on Friday as escalating tensions in the Middle East heightened concerns over global oil supplies, raising the prospect of another increase in petrol prices in Nigeria.

The international benchmark rose by 1.8 per cent to $115.18 per barrel, while United States West Texas Intermediate crude futures gained two per cent to $101.56 per barrel, amid growing expectations that Washington could resume military strikes on Iran in the coming weeks.

The rally comes as Nigerian consumers continue to grapple with elevated petrol prices, which affected inflationary pressure and heightened the cost of living.

Although no fresh increase has been announced by either refiners or importers, sustained increases in international crude prices usually put further pressure on domestic petrol prices by raising feedstock and refined-product replacement costs.

CNBC reports that the latest oil price rally was driven by fears of a renewed military escalation involving the United States and Iran, alongside attacks on energy infrastructure and shipping routes in the Middle East.

Reuters reported on Friday that Brent crude had touched $115.16 per barrel, its highest level since May 4, as attacks by Houthi militants in Saudi Arabia heightened concerns about further disruption to energy supplies.

The report also highlighted the evacuation of Saudi Aramco’s headquarters in Dhahran amid intensifying regional fighting.

Brent futures were on course for a weekly gain of about five per cent, which would mark their third consecutive week of increases. WTI was also heading for a weekly gain, although its advance was considerably smaller.

The renewed concerns followed remarks by United States President Donald Trump on Wednesday that Washington was not negotiating with Iran and that something would happen “fairly soon”.

The comments came amid reports that US and Israeli officials were considering fresh strikes against Iran after the American midterm elections.

Iran’s army chief, meanwhile, said the country’s military was fully prepared for “asymmetric warfare” after strengthening its capabilities, according to the Iranian state media agency Tasnim.

The growing tensions have also extended to Saudi Arabia, where Iran-allied Houthi militants have continued attacks. The United States State Department ordered non-essential personnel to leave the country amid the security concerns.

A drone attack targeting the Shaybah oil field in Saudi Arabia’s Eastern Region on Wednesday reportedly killed two people and injured two others. Another attack on King Fahd International Airport in Dammam also left at least two people dead and eight injured, according to Saudi state media.

Reuters reported that Saudi Aramco had ordered staff to evacuate its Dhahran headquarters and work remotely following attacks by Iran-backed Houthi rebels.

The developments have raised fears of further disruption to crude production, exports and shipping across the Middle East, a region central to global energy supplies.

Of particular concern is the Strait of Hormuz, a strategic waterway through which a significant share of the world’s oil supplies normally passes. Disruptions to shipping through the strait have already contributed to market volatility, while renewed attacks could further tighten supplies and increase freight and insurance costs.

For Nigeria, higher international crude prices could feed into the cost of petrol supplied by domestic refiners and imported products, depending on their crude procurement costs, refining margins, logistics and prevailing market prices.

Dangote Petroleum Refinery, a major supplier to the domestic market, last announced an increase in its petrol gantry price from N1,265 to N1,350 per litre, effective 12 September.

Segilola Resources Operating Limited, a subsidiary of Thor Explorations Ltd and operator of Nigeria’s first commercial gold mine, reaffirmed its commitment to responsible mining at Nigeria Mining Week 2026, where it participated as a Diamond Sponsor.

Held from 12-14 October in Abuja, the 11th edition of NMW brought together government representatives, investors, mining companies and technical experts to fully explore this year’s theme of ‘Unlocking Investment and Growth through Partnerships’ and build capacity across the mining value chain.

The event was hosted by the Ministry of Solid Minerals Development and organised by the Miners Association of Nigeria in partnership with PwC Nigeria.

Delivering the keynote address at the main conference, SROL’s Country Manager, Austin Menegbo, noted that the success of the Segilola Gold Mine is operating proof that successful commercial gold mines can be built and operated in Nigeria and also highlighted the importance of patient capital, technical discipline, effective regulation and strong community partnerships in establishing a commercially viable mining industry in Nigeria.

He said: “The opportunity before Nigeria is significant. But potential, by itself, creates no jobs, earns no export revenue, builds no skills and transforms no communities. Potential becomes valuable only when institutions and industry work together to convert it into responsible production. Segilola has shown that this can be done. Our responsibility now is to make the path clearer for the projects that should follow—not by lowering the bar, but by making the rules coherent, the processes credible and the partnerships real. If we do that, Nigeria will not merely have a successful gold mine. It will have a stronger mining industry: one that attracts serious capital, rewards responsible operators, expands Nigerian participation and delivers enduring value to the nation.”

At its masterclass, ‘From Compliance to Stewardship – Water Management: The SROL Way’, SROL shared insights into its approach to water management, recycling and conservation. The session highlighted the importance of integrating water stewardship into mining operations and managing water resources responsibly throughout the mining process.

SROL also delivered ‘Building a Commercial Gold Industry in Nigeria – Lessons from Segilola and the Path to Scale’, sharing lessons from establishing Nigeria’s first large-scale commercial gold mining operation and exploring opportunities for the wider industry. Through its exhibition booth, the company further engaged stakeholders on environmental stewardship, workplace safety and host community development.

Nigeria’s mining sector offers significant opportunities for economic diversification, job creation and industrial development. Realising this potential will require investment, effective regulation, local capabilities and responsible environmental management.

SROL’s participation at NMW 2026 reinforces its commitment to sharing operational expertise, advancing responsible mining practices and supporting the development of a competitive mining industry that creates lasting value for Nigeria and its communities.