By Chibuzor Alli
JPMorgan Chase & Co has deposited N50bn with the Central Bank of Nigeria (CBN), moving a step closer to securing a merchant banking licence as the American financial giant seeks to expand its footprint in Africa’s largest economy.
The deposit, valued at approximately $38m, fulfils a key regulatory requirement in the bank’s licence application, according to a Bloomberg report published on Tuesday. However, the payment does not amount to regulatory approval, as the CBN has yet to make a final decision on the application.
People familiar with the process, who requested anonymity because the matter is private, said the deposit was among the final requirements for obtaining the licence. They added that JPMorgan expects a decision by the end of 2026 or early 2027, subject to the regulator’s approval.
Bloomberg reported: “JPMorgan Chase & Co. deposited 50 billion naira ($38 million) with the Central Bank of Nigeria as it moves closer to securing a banking license in Africa’s most populous nation, according to people familiar with the matter.
“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, said the people who asked not to be identified because the process is private.”
The report added that JPMorgan declined to comment on the development, while a CBN spokesman did not immediately respond to a request for comment.
JPMorgan Eyes Bigger Role in Nigeria’s Financial Market
A merchant banking licence would give JPMorgan a broader platform to serve Nigerian businesses, government institutions and investors beyond the activities permitted under its existing representative-office arrangement in Lagos.
The bank has maintained a presence in Nigeria for years, advising governments and companies on Eurobond issuances and other financial transactions. Securing a licence could allow it to expand into additional areas of corporate banking, lending, trade finance and payments, depending on the scope of regulatory approval.
The proposed expansion comes as international financial institutions seek greater access to Africa’s banking and investment markets, where businesses and governments require financing, cross-border payment solutions and support for international trade.
Nigeria’s sizeable economy, extensive corporate sector and position in regional commerce make it an important market for financial institutions seeking to deepen their African operations.
N50bn Deposit Meets Key Regulatory Requirement
Under Nigeria’s banking regulatory framework, licence applicants are required to place capital in a designated account with the CBN as part of the approval process. The requirement is intended to demonstrate that an applicant has the financial resources to support its proposed operations.
JPMorgan’s N50bn deposit therefore represents a significant milestone in its bid to transition from its current representative-office structure to a licensed merchant banking operation.
Nevertheless, the final decision rests with the CBN, which oversees banking licences, capital requirements and prudential standards aimed at maintaining the stability of Nigeria’s financial system.
JPMorgan Strengthens Leadership Across Africa
The Nigerian licence bid also comes as JPMorgan expands its leadership structure across the continent.
The bank recently appointed Edward Bell to lead investment banking in sub-Saharan Africa, while Sailepu Montet was named head of its Kenya office. Michael Ahonzo Avou was also appointed to oversee operations in Ivory Coast.
These appointments point to the lender’s broader ambition to strengthen its relationships with companies, governments and investors operating across African markets.
For Nigeria, a successful application could create another channel for international corporate banking services and deepen the country’s links with global capital markets. However, the extent of JPMorgan’s eventual operations will depend on the licence granted by the CBN and the conditions attached to its approval.
Until the regulator reaches a decision, the N50bn deposit remains an important step in the bank’s expansion plans rather than confirmation that its Nigerian merchant banking operation has been approved.
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