JPMorgan Chase & Co. has deposited ₦50 billion ($38 million) with the Central Bank of Nigeria (CBN) as it moves closer to securing a licence to operate a merchant bank in Nigeria, Bloomberg reported on Tuesday.
The deposit is one of the final regulatory requirements the US banking giant needs to meet before it can receive approval to begin operations. Bloomberg cited people familiar with the matter, who asked not to be identified because the process is still private.
JPMorgan’s planned entry is part of its wider push to grow its business in Africa, particularly in payments, lending, trade finance and corporate banking.
JPMorgan closes in on CBN approval
The ₦50 billion deposit meets the minimum capital requirement for a nationally authorised merchant bank in Nigeria.
JPMorgan’s application still needs final approval from the CBN, meaning the deposit does not mean the bank has received its licence yet. The bank is reportedly hoping to complete the process by the end of 2026 or early 2027.
Dapo Olagunju, managing director of JPMorgan West Africa, had earlier disclosed the bank’s plans to establish a merchant banking operation in Nigeria during the Nigeria-Asia Financial Connectivity Dialogue in Singapore.
The move would give JPMorgan a larger operating presence in Nigeria, beyond its existing representative office in Lagos.
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Why Nigeria matters to JPMorgan
JPMorgan has been increasing its focus on Africa as it looks for opportunities in some of the continent’s largest and fastest-growing markets.
Nigeria’s growing economy, and financial sector, as well as the demand from businesses for international banking, trade finance and access to global capital markets, could make it suitable for the American multinational banking institution
Before, now, the bank has also been increasing its engagement with Nigeria’s financial markets. In September, Nigeria was included in JPMorgan’s Government Bond Index-Emerging Markets Edge, with Nigerian government bonds receiving a 7.4% weighting.
The inclusion could increase the visibility of Nigerian government securities among international investors, while JPMorgan’s planned merchant banking operation could deepen its relationship with Nigerian businesses and institutions.