JPMorgan Chase & Co., the largest bank in the United States by assets, has deposited N50bn ($38m) with the Central Bank of Nigeria as it progresses towards securing a merchant banking licence in the country.
Bloomberg reported, citing people familiar with the matter, that the deposit is among the final regulatory requirements for approval.
The move signals the US lender’s readiness to begin merchant banking operations in Nigeria.
The sources, who requested anonymity because the licensing process is private, said JPMorgan expects to obtain the licence by the end of 2026 or early 2027, subject to regulatory approval.
However, approval is not guaranteed, as the Central Bank of Nigeria retains the final authority to decide whether to grant the licence.
Under Nigerian banking regulations, prospective banks are required to deposit capital into a designated account with the central bank as part of the licensing process.
The requirement is designed to demonstrate that applicants have sufficient funds to support their proposed operations.
The development marks a significant step in JPMorgan’s efforts to expand its presence in Africa’s largest economy, with the lender seeking to grow its exposure to trade finance, lending, payments and corporate banking.
The New York-based bank currently operates a representative office in Lagos, giving it a limited presence in Nigeria compared with the broader range of services it could offer under a full banking licence.
JPMorgan’s bid to secure a Nigerian banking licence is part of its broader strategy to expand its presence across Africa and tap into the continent’s growing corporate and investment banking opportunities.
The lender has strengthened its investment banking leadership in sub-Saharan Africa in recent months, appointing Edward Bell to lead its investment banking business across the region.
It also appointed Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee its operations in Ivory Coast.
The appointments underscore JPMorgan’s efforts to broaden its regional coverage and deepen relationships with businesses, governments and institutional clients across the continent.
