Nigeria's central bank has given JPMorgan approval in principle to set up a merchant bank in the country. The preliminary licence is an interim stage that lets the American banking giant prepare its operations while the regulator completes its checks before a final approval. Merchant banks in Nigeria serve companies and institutions rather than everyday depositors, concentrating on wholesale deposits and corporate lending. A full licence would put JPMorgan among the small group of international banks operating directly in Nigeria's commercial banking space. The decision comes as global financial firms keep weighing opportunities in one of Africa's largest economies. Nigerian authorities have been courting foreign capital in the banking sector as they push reforms of the foreign exchange and financial markets. No date has been given for when the final licence will be issued.