JPMorgan Chase & Co has deposited N50bn with the Central Bank of Nigeria as part of its application for a merchant banking licence. The deposit, worth approximately $38m, is a major step towards establishing a licensed banking operation in Nigeria, according to Bloomberg.
The payment fulfils a key regulatory requirement but does not guarantee approval. People familiar with the process told Bloomberg that the American lender expects to secure the licence by the end of 2026 or early 2027, depending on the CBN’s decision.
The deposit is reportedly one of the final requirements for obtaining the licence. JPMorgan declined to comment on the development, while a CBN spokesperson did not immediately respond to Bloomberg’s request for comment.
JPMorgan has maintained a presence in Nigeria through a representative office in Lagos, advising governments and companies on financial transactions, including Eurobond issuances. A merchant banking licence would allow the lender to expand its services to include corporate banking, lending, trade finance and payments.
Under Nigerian banking regulations, licence applicants are required to deposit capital in a designated account with the CBN. The requirement helps demonstrate that applicants have sufficient funds to support their proposed operations and forms part of the regulator’s approval process.
The proposed expansion comes as international financial institutions seek greater participation in Africa’s banking and investment markets.
JPMorgan has also made appointments to strengthen its regional operations, naming Edward Bell to lead investment banking in sub-Saharan Africa, Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee operations in Ivory Coast.
Nigeria’s large economy, corporate sector and role in regional trade make it an important market for financial services. However, JPMorgan’s ability to operate as a licensed merchant bank, and the range of services it can offer, will depend on the CBN’s final decision.
