JPMorgan Chase & Co. has placed N50 billion ($38 million) with the Central Bank of Nigeria (CBN) to advance its bid for a merchant banking licence in the West African nation. Bloomberg reported on Tuesday that the capital injection satisfies a critical regulatory condition, allowing the US lender to move closer to launching a full banking subsidiary. Sources familiar with the process, who spoke on condition of anonymity, indicated that the bank anticipates receiving final approval by the end of 2026 or the beginning of 2027, contingent on all necessary clearances.
Nairametrics explained that the deposit demonstrates the applicant’s financial capacity to support its proposed operations, a standard requirement for new entrants in the Nigerian market. While the deposit signals readiness, the CBN still holds the ultimate authority to approve or reject the application. The move follows a public announcement by Dapo Olagunju, JPMorgan’s managing director for West Africa, who outlined plans for a merchant banking subsidiary during the Nigeria-Asia Financial Connectivity Dialogue in Singapore earlier this month. The event was organized by the CBN alongside JPMorgan, the Nigerian Exchange Group, and FMDQ Group.
Currently, JPMorgan maintains a representative office in Lagos, which offers a restricted scope of services compared to a fully licensed entity. Premium Times noted that the new licence would enable the bank to broaden its offerings, which currently focus on asset and wealth management as well as commercial and investment banking. Nairametrics added that the expansion would permit the lender to introduce dollar-denominated loans for large corporations and enhance its ability to facilitate cross-border transactions for businesses engaged in international trade.
This strategic step aligns with JPMorgan’s wider ambition to increase its footprint across Africa, targeting growth in payments, lending, and corporate banking. The bank has recently reinforced its regional leadership by appointing Edward Bell to oversee investment banking in sub-Saharan Africa. It also named Sailepu Montet to lead its Kenya office and Michael Ahonzo Avou to manage operations in Ivory Coast. JPMorgan’s history in Nigeria stretches back to 1961, when its predecessor, Chase Manhattan Bank, opened a branch in Lagos to serve local commercial clients.