JPMorgan Chase & Co., one of the world’s largest banking institutions, has deposited N50 billion (about $38 million) with the Central Bank of Nigeria (CBN) as part of efforts to secure a merchant banking licence in the country.
The deposit fulfils a key regulatory requirement and signals the US banking giant’s readiness to establish a fully licensed banking operation in Africa’s largest economy, Bloomberg reported on Tuesday.
According to sources familiar with the application, the payment is one of the final steps in the licensing process, although it does not guarantee approval. The CBN is yet to make a final decision on the application.
The sources, who spoke on condition of anonymity, said JPMorgan expects to obtain regulatory approval by late 2026 or early 2027, subject to the outcome of the CBN’s assessment.
“The deposit, one of the final regulatory requirements for obtaining approval, signals the largest US lender’s readiness to launch a merchant-banking operation in Nigeria should its application be approved,” Bloomberg quoted the sources as saying.
JPMorgan declined to comment on the development, while the CBN had yet to issue an official response at the time of the report.
The proposed licence would mark a significant expansion of the bank’s operations in Nigeria, where it has maintained a representative office in Lagos for years. Through the office, the lender has advised the Federal Government and corporate clients on Eurobond issuances and other financial transactions.
Securing a merchant banking licence would enable JPMorgan to expand its services to include corporate banking, lending, trade finance and payment services, subject to the applicable regulatory framework.
Under CBN regulations, applicants are required to deposit capital in a designated account as evidence of their financial capacity to support their proposed banking operations.
JPMorgan’s planned entry into Nigeria is also consistent with its broader expansion strategy across Africa, where international financial institutions are seeking opportunities in trade finance, corporate lending and cross-border payment services.
The bank has recently strengthened its leadership structure in the region, appointing Edward Bell to lead investment banking in sub-Saharan Africa, Sailepu Montet as head of its Kenya office, and Michael Ahonzo Avou to oversee its operations in Ivory Coast.
If approved, the proposed licence would deepen JPMorgan’s presence in Nigeria’s financial services sector and potentially expand access to international banking expertise and financing for Nigerian businesses.
