JPMorgan is on track to secure a merchant banking license in Nigeria after making a $38 million statutory deposit to the country’s central bank, Bloomberg reported. If successful, the New York-based lender, which has been bullish about Nigeria’s prospects, would add considerable heft to the investment banking sector as the country seeks to attract more foreign capital.
The move to acquire a Nigeria license is part of the bank’s Africa expansion, including the appointment of an investment banking lead for sub-Saharan Africa this year, and opening offices in Nairobi and Abidjan. It comes as Nigeria’s securities regulator this week unveiled a 10-year plan to grow the country’s capital markets, including a target to raise annual diaspora investment to $10 billion, from $4 billion. It also comes on the heels of the Dangote refinery’s IPO that is aiming to raise at least $1.6 billion by the time it closes.
