It is not coming to compete with commercial banks, it is a marchant bank.
The thing is that this bank has been here since 1982 but it just had an office in Lagos which was reference as rep office, they already have customers here. I believe that, for them to finally want to upgrade fully to a merchant bank, they have seen more potential to profit from, else, mahn.. This guys ain't gonna be here.
I won't use your word "coming," As they have been here for decades even though it was not fully flagged like they want to do now. Yes, they won't compete with commercial banks but that's only in terms of individual customers like you and I but where they will compete with commercial banks is in terms of loans disbursement. AFAIK, a global giant company (like JP Morgan) is likely to offer highly competitive compensation package and the Nigeria banks will face a big competition for their top tier talent.
By 1975, Morgan Guaranty Trust (a JP Morgan predecessor) had partnered with the Nigerian Industrial Development Bank to form Icon Ltd., a merchant bank in Lagos. In 1978, it joined a US$1 billion syndicate loan to help fund Nigeria’s infrastructure boom.
Even after the big U.S. banks began pulling out of frontier markets in the 1980s, Chase kept a rep office in Nigeria, opened formally in 1982, and maintained a presence through limited mandates.
In 2007, JPMorgan issued its first Depositary Receipts for a Nigerian company—Guaranty Trust Bank. By 2014, it had co-financed a $100 million loan to the Africa Finance Corporation, alongside the U.S. Overseas Private Investment Corporation.
What do you think about this?
Well, I'd say it would impact positively to the country's macroeconomic optics and corporate financial system. However, 'on verra bien.'
