JPMorgan Chase & Co., the largest bank in the United States by assets, has deposited N50 billion ($38 million) with the Central Bank of Nigeria (CBN) as it advances its application for a merchant banking licence in Nigeria.
According to Bloomberg, which cited people familiar with the matter, the deposit is one of the final regulatory requirements for obtaining approval and signals the lender’s readiness to commence merchant banking operations in the country.
The sources, who requested anonymity because the licensing process is private, said JPMorgan expects to secure the licence by the end of 2026 or early 2027, subject to regulatory approval.
The New York-based lender currently operates a representative office in Lagos, which provides a limited presence compared with a fully licensed banking operation.
The Nigerian licensing bid forms part of JPMorgan’s broader strategy to deepen its presence across Africa and capture a larger share of the continent’s growing corporate and investment banking opportunities.
These appointments reflect the lender’s efforts to expand its regional coverage and strengthen relationships with businesses, governments and institutional clients.
Securing a Nigerian banking licence would provide JPMorgan with a broader platform to serve local corporates, facilitate cross-border transactions and expand its lending activities.
However, the planned expansion remains subject to the CBN’s final decision on the licence application.
JPMorgan plans to convert its longstanding Lagos representative office into a fully operational business branch, allowing it to broaden the range of services available to Nigerian corporate clients.
It would also position the lender to compete more directly for corporate banking business in a market where demand for foreign currency funding and international financial services remains significant.
