U.S. banking giant targets late 2026 or early 2027 for approval as it seeks to expand beyond its existing representative office in Lagos…..
JPMorgan Chase & Co. has taken a major step towards establishing a licensed banking operation in Nigeria after depositing N50 billion with the Central Bank of Nigeria (CBN) as part of its application for a merchant banking licence.
The deposit, estimated at 38 million dollars, fulfils a key regulatory requirement for the application and signals the American financial institution’s readiness to deepen its presence in Africa’s largest economy. However, the payment does not guarantee approval, as the CBN is yet to reach a final decision on the application.
Bloomberg reported on Tuesday that people familiar with the process disclosed that the deposit was among the final regulatory requirements for the licence. The sources, who requested anonymity because the process is private, said JPMorgan expects to receive approval by the end of 2026 or in early 2027, depending on the regulator’s decision.
The report added that JPMorgan declined to comment on the development, while a spokesperson for the CBN did not immediately respond to a request for comment.
The proposed move would mark a significant expansion of JPMorgan’s operations in Nigeria, where the bank has spent years providing financial advisory services to governments, corporations and other institutions. Its activities have largely been conducted through its representative office in Lagos, including advisory work on Eurobond issuances and other major financial transactions.
Securing a merchant banking licence would give the lender a broader platform to serve Nigerian businesses and institutions. Its potential areas of operation include corporate banking, lending, trade finance and payment services, although the scope of its activities would depend on the terms of the licence eventually granted by the CBN.
Under Nigeria’s banking regulations, prospective lenders are required to deposit the stipulated capital with the apex bank as part of the licensing process. The requirement is designed to demonstrate that applicants have adequate financial resources to support their proposed operations and meet regulatory obligations.
JPMorgan’s N50 billion deposit therefore represents an important milestone in its bid to move beyond its existing representative-office structure and establish a more direct presence in Nigeria’s banking sector. Nevertheless, the final decision rests with the CBN, which is responsible for assessing applications and ensuring compliance with the country’s financial regulations.
The development comes amid growing interest from international financial institutions in Africa’s banking and investment markets, where demand for corporate financing, trade credit and cross-border payment services continues to create opportunities for major global lenders.
For JPMorgan, a licensed Nigerian operation could strengthen its ability to compete for business involving companies, governments and investors across the continent. Nigeria’s large economy, extensive corporate sector and position in regional commerce make it an important market for financial institutions seeking to expand their African footprint.
The proposed entry also aligns with the bank’s broader strategy to strengthen its investment banking operations across the continent. In recent months, JPMorgan has made key appointments to its African leadership team, including naming Edward Bell to lead investment banking in sub-Saharan Africa. Sailepu Montet was appointed head of its Kenya office, while Michael Ahonzo Avou was named to oversee operations in Ivory Coast.
These appointments point to the bank’s continued focus on expanding its reach across African markets and strengthening relationships with businesses and institutional clients.
However, its proposed Nigerian banking operation remains subject to regulatory approval. Until the CBN concludes its assessment, the N50 billion deposit will remain a step towards securing the licence rather than confirmation that JPMorgan has been authorised to commence merchant banking operations in the country.
