JPMorgan reportedly deposits $38 million with Nigeria’s central bank as banking launch moves closer

JPMorgan Chase has reportedly deposited ₦50 billion, approximately $38 million, with the Central Bank of Nigeria as the US banking giant moves closer to securing a merchant banking licence.

• JPMorgan has reportedly deposited ₦50 billion ($38 million) with the CBN as it seeks a Nigerian merchant banking licence.
• The deposit meets the minimum capital requirement, but regulatory approval is still pending.
• The proposed bank would serve major businesses with corporate finance, trade finance and cross-border banking services.
• JPMorgan could receive approval by late 2026 or early 2027, increasing competition among banks serving Nigeria’s largest companies.

The deposit meets the minimum paid-up capital requirement for a nationally authorised merchant bank in Nigeria and represents one of the final regulatory steps in JPMorgan’s application, according to people familiar with the process.

A licence would allow JPMorgan to expand beyond its existing representative office in Lagos and establish a larger operating platform in one of Africa’s biggest financial markets.

The bank could use the operation to serve large Nigerian and multinational companies seeking corporate finance, cross-border payments, trade finance, treasury services and access to global capital markets. Its arrival would also increase competition among banks serving Nigeria’s biggest corporate clients.

Bloomberg reported⁠ on 20 October that JPMorgan expects to receive approval before the end of 2026 or in early 2027.

The reported deposit does not amount to confirmation that a licence has been approved.

The development comes less than two weeks after Dapo Olagunju, managing director of JPMorgan’s West African business, announced that the company planned to establish a merchant bank in Nigeria before the end of 2026, subject to regulatory approval.

Business Insider Africa previously reported⁠ that the plan was announced during the Nigeria–Asia Financial Connectivity Dialogue in Singapore, which brought together the CBN, JPMorgan, the Nigerian Exchange Group and FMDQ Group.

The ₦50 billion reportedly deposited by JPMorgan corresponds with the minimum capital requirement introduced by the CBN for nationally authorised merchant banks.

The requirement was raised from ₦15 billion to ₦50 billion in March 2024 as part of a wider recapitalisation programme. Under the same framework, national commercial banks require ₦200 billion, while banks with international authorisation require ₦500 billion.

The CBN requires promoters of proposed banks to demonstrate that they have sufficient paid-up capital to begin operations. Satisfying that requirement, however, does not automatically produce a licence. The regulator must still assess the company’s ownership, governance, business model, management, risk controls and operational readiness.

Regulatory approval would allow JPMorgan to expand its Nigerian operations beyond its current representative office and advisory activities. The bank has also helped Nigerian governments and companies raise funds through international bond issues and other capital-market transactions.

The proposed merchant bank also forms part of JPMorgan’s wider African expansion. The company has strengthened its investment-banking operations in sub-Saharan Africa and appointed senior executives to oversee its offices in Kenya and Côte d’Ivoire.

If approved, the new operation could give major Nigerian businesses another direct route to international financing and global investors. Domestic and foreign banks already competing for corporate clients, syndicated lending and cross-border transactions would face a larger US rival.