Find out more as another bank set to begin operation in Nigeria, deposits N50bn with CBN

• JPMorgan Chase deposited N50 billion with the Central Bank of Nigeria as part of its merchant banking licence application
• The US bank's move signals a push to expand its presence in Nigeria beyond its current advisory role in Lagos
• A licence could allow JPMorgan to offer wholesale banking and corporate finance services in Nigeria

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

JPMorgan Chase has taken a significant step towards obtaining a banking licence in Nigeria, depositing N50 billion ($38 million) with the Central Bank of Nigeria (CBN) to meet a key capital requirement, Bloomberg reported.

The deposit meets the minimum paid-up capital threshold for a nationally authorised merchant bank under the CBN's recapitalisation framework.

JPMorgan expects regulatory approval by the end of 2026 or early 2027, although the outcome depends on the CBN's decision.

The bank declined to comment on the matter, while the CBN did not respond to a request for comment, according to Bloomberg.

JPMorgan's current presence in Nigeria

The American bank has operated in Nigeria for years through a Lagos representative office, advising governments and corporations on Eurobond issuances and other financial transactions.

A merchant banking licence would represent a larger commitment, allowing the bank to move beyond advisory work into wholesale banking activities, including corporate lending, treasury services, capital markets transactions and asset management.

A locally licensed operation could give JPMorgan a more direct role in financing Nigerian companies and financial institutions while positioning it to support transactions involving international investors, BusinessDay reports.

JPMorgan expands its African presence

Nigeria's potential licensing approval comes amid a broader effort by JPMorgan to strengthen its presence across Africa.

The bank has made several regional appointments in recent months, naming Edward Bell as head of investment banking in sub-Saharan Africa, Sailepu Montet to lead its Kenya office and Michael Ahonzo Avou to oversee operations in Ivory Coast.

Nigeria's corporate sector and capital markets offer opportunities for international lenders seeking to expand their African operations.

If JPMorgan secures the licence, it could increase competition for major corporate clients among local and foreign banks operating in the country.

The development also comes as Nigeria pursues foreign exchange reforms aimed at restoring investor confidence.

However, currency volatility and broader economic risks remain important considerations for international financial institutions assessing opportunities in the country.

CBN approves as another bank begins operations in Nigeria

Earlier, Legit.ng reported that Bank78 MFB has officially commenced operations as a private digital lender in Nigeria.

The bank stated that although it is inspired by private-banking culture and mindset, it is deliberately designed for the mass-affluent everyday Nigerian, offering a secure and premium digital banking experience.

The bank noted that it is fully licensed by the Central Bank of Nigeria (CBN), insured by the Nigeria Deposit Insurance Corporation (NDIC), and fully compliant with the Nigeria Data Protection Regulation (NDPR) and will prioritise transparency, security, and dependable transactions.

Source: Legit.ng