In efforts to expand its operations in Africa’s largest economy, JPMorgan Chase & Co is targeting to own a merchant banking licence in Nigeria, and has reportedly deposited N50bn with the Central Bank of Nigeria (CBN).
The amount which is equivalent of about $38m, is a key requirement in the application process and signals the lender’s readiness to establish a licensed banking operation in Nigeria, Bloomberg reported on Tuesday.
However, the payment does not guarantee approval, as the CBN is yet to make a final decision on the application.
People familiar with the process, who asked not to be identified because the matter was private, said the deposit was one of the final regulatory requirements for the licence. They added that the bank expects to obtain approval by the end of 2026 or in early 2027, subject to the regulator’s decision.
The report reads, “JPMorgan Chase & Co. deposited 50 billion naira ($38 million) with the Central Bank of Nigeria as it moves closer to securing a banking license in Africa’s most populous nation, according to people familiar with the matter.
“The deposit, one of the final regulatory requirements for obtaining approval, signals the largest US lender’s readiness to launch a merchant-banking operation in Nigeria should its application be approved, said the people who asked not to be identified because the process is private.”
JPMorgan declined to comment on the development, while a CBN spokesman did not immediately respond to a request for comment, according to Bloomberg.
The proposed entry would mark a significant expansion of the bank’s presence in Nigeria, where it has advised governments and companies on Eurobond issuances and other financial transactions for years, largely through its representative office in Lagos.
A merchant banking licence would enable the lender to broaden its financial services in the country, particularly in corporate banking, lending, trade finance and payments.
Under Nigerian banking regulations, licence applicants are required to place capital in a designated account with the CBN as part of the approval process. The requirement is intended to demonstrate that an applicant has sufficient funds to support its proposed operations.
The N50bn deposit therefore represents an important step in JPMorgan’s attempt to move beyond its existing representative-office structure. Final approval, however, remains at the discretion of the apex bank.
JPMorgan’s proposed Nigerian operation also forms part of its wider expansion strategy across the continent. The New York-based lender is seeking a larger share of business involving companies, governments and investors operating in African markets.
The bank has also strengthened its investment-banking leadership across Africa in recent months.
It appointed Edward Bell to lead investment banking in sub-Saharan Africa, while Sailepu Montet was named head of its Kenya office and Michael Ahonzo Avou was appointed to oversee operations in Ivory Coast.
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