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NIGERIA · BANKING
Key Facts
- —The country Nigeria is Africa’s most populous country and a major oil exporter, with Lagos as its commercial capital. Its currency is the naira.
- —What happened On Tuesday 20 October, Nigerian outlets said JPMorgan Chase deposited N50 billion (about US$37.5 million) with the Central Bank of Nigeria.
- —The bank JPMorgan Chase is the largest US bank by assets. In Nigeria it has so far worked mainly through a representative office in Lagos.
- —The licence A Nigerian merchant bank serves companies, governments and large investors, and needs at least N50 billion (about US$37.5 million) in capital.
- —The timing People familiar with the matter expect the licence by the end of 2026 or in early 2027, subject to the central bank’s approval.
- —The rate used N1,332.82 to the US dollar, the market rate on 20 October 2026.
- —Still open The central bank has published no approval, and JPMorgan declined to comment on the deposit.
The JPMorgan Nigeria licence bid advanced as it paid N50 billion (about US$37.5 million) to Nigeria’s central bank, local outlets said on Tuesday 20 October. JPMorgan Chase is the largest US bank by assets.
For US investors in Nigerian bonds, a merchant banking licence would put a Wall Street lender on the ground in Lagos. The Central Bank of Nigeria (CBN), the country’s regulator, still has to approve it.
What Was Deposited at the Central Bank
Premium Times, BusinessDay, TheCable and Nairametrics all reported on Tuesday that JPMorgan placed N50 billion (about US$37.5 million) with the CBN. They called the payment one of the final requirements for the JPMorgan Nigeria licence.
The reports rest on unnamed people familiar with the matter, who said JPMorgan hopes for the permit by end-2026 or early 2027. BusinessDay added that JPMorgan declined to comment and that the CBN did not immediately respond.
Why a Merchant Bank Needs Fresh Capital
A merchant bank in Nigeria serves companies, governments and big investors, not ordinary savers. Under the CBN’s recapitalisation rules, a merchant bank with a national licence needs at least N50 billion (about US$37.5 million) in capital.
Nigerian rules require applicants to place that capital in a designated account at the central bank. The deposit meets the money test, though it does not by itself win the JPMorgan Nigeria licence.
What JPMorgan Wants to Do in Nigeria
JPMorgan has long served clients in Nigeria from a representative office in Lagos, which offers limited services. Chase Manhattan Bank, a predecessor of today’s JPMorgan Chase, opened a Lagos branch in 1961, Premium Times noted.
The bank wants to turn the office into a full unit for lending, trade finance and payments, Nairametrics reported. It would also offer dollar loans and corporate banking to large companies.
How the Deposit Follows the Singapore Announcement
On Thursday 8 October in Singapore, Dapo Olagunju, who heads JPMorgan West Africa, said the bank plans a Nigerian merchant bank by end-2026. He spoke at a dialogue that the CBN, the Nigerian Exchange Group and the FMDQ Group organised with the bank.
The Rio Times covered that announcement in JPMorgan Plans Nigeria Merchant Bank by December. The deposit is the first reported step since then, and it keeps the JPMorgan Nigeria licence bid on track.
What It Means for US Readers
JPMorgan Chase trades on the New York Stock Exchange, so its Nigeria push matters to US shareholders and funds holding Nigerian debt. A local unit could ease settlement, hedging and deal advice for American investors in a market with a history of currency shortages.
US companies that operate in Nigeria could gain another lender for large projects, if the JPMorgan Nigeria licence is granted. Nigeria’s public debt, which the Rio Times explained on 12 October, makes foreign bank presence and steady dollar access matter to bondholders.
What Is Not Known
The CBN has published no approval and no date for a decision. Nor has JPMorgan said when it made the deposit, how many staff the unit would have, or what it will be called.
It is also open whether the bank will take Nigerian deposits from companies or focus on advice and markets work. Approval is not guaranteed, and the licence could come later than the end of 2026.
More: Nigeria news in English, every day from The Rio Times.
Frequently Asked Questions
What did JPMorgan deposit with Nigeria’s central bank?
JPMorgan Chase deposited N50 billion (about US$37.5 million at N1,332.82 to the dollar) with the Central Bank of Nigeria. Nigerian outlets reported the payment on Tuesday 20 October.
Has Nigeria granted JPMorgan a banking licence?
No, the central bank has published no approval of the JPMorgan Nigeria licence. People familiar with the matter expect a decision by the end of 2026 or in early 2027.
What is a merchant bank in Nigeria?
A merchant bank serves companies, governments and large investors with loans, trade finance and bond deals. It does not run a branch network for ordinary savers.
Why does the JPMorgan Nigeria licence matter to US investors?
A local JPMorgan unit could ease settlement, currency hedging and deal advice for US funds that hold Nigerian bonds. It could also give American firms in Nigeria another large lender.
Does JPMorgan already operate in Nigeria?
Yes, it has a representative office in Lagos that offers limited services. The JPMorgan Nigeria licence would let it grow that office into a fuller banking unit.
Sources: Premium Times, 20 October 2026; BusinessDay, 20 October 2026; TheCable, 20 October 2026; Nairametrics, 20 October 2026; Leadership, 20 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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