JPMorgan Chase & Co., the largest bank in the United States by assets, has placed N50 billion ($38 million) with the Central Bank of Nigeria (CBN) as it advances its application for a merchant banking licence in the country.
Bloomberg reported, citing people familiar with the matter, that the deposit represents one of the final regulatory requirements before approval and signals the lender's readiness to begin merchant banking operations in Nigeria. The sources spoke on condition of anonymity because the licensing process is private.
JPMorgan expects to secure the licence by the end of 2026 or early 2027, subject to regulatory approval, although the CBN retains the final decision and there is no guarantee the application will succeed. Under Nigerian banking regulations, prospective banks are required to place capital in a designated account with the central bank during the licensing process, a requirement intended to demonstrate that applicants hold sufficient funds to support their proposed operations.
The development marks a significant step in the bank's effort to expand in Africa's largest economy, where it is seeking greater exposure to trade finance, lending, payments and corporate banking. The New York-based lender currently operates a representative office in Lagos, which provides a more limited presence than a fully licensed banking operation.
The Nigerian licence bid forms part of a broader African strategy. JPMorgan has strengthened its investment banking leadership in sub-Saharan Africa in recent months, appointing Edward Bell to lead investment banking across the region. It has also named Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee operations in Ivory Coast.
Securing a Nigerian banking licence would give JPMorgan a broader platform to serve local corporates, facilitate cross-border transactions and expand lending. The bank plans to convert its longstanding Lagos representative office into a fully operational business branch, broadening the range of services available to Nigerian corporate clients. Last year, Nairametrics reported that the bank was preparing to apply for a merchant banking licence from the CBN.
The proposed licence would allow JPMorgan to move beyond its existing advisory and asset management activities and introduce additional banking services, including dollar-denominated loans tailored to large corporations. The expansion would strengthen its ability to serve Nigerian businesses engaged in international trade and other transactions requiring access to foreign currency financing, while positioning the lender to compete more directly for corporate banking business in a market with significant demand for foreign currency funding and international financial services.
