In a bid to secure a merchant banking license and expand its footprint in Africa’s largest economy, JPMorgan Chase & Co. has deposited ₦50 billion with the Central Bank of Nigeria.
According to a Bloomberg report on Tuesday, the deposit—worth approximately $38 million—fulfills a vital requirement in the U.S. financial giant’s application, signaling its readiness to establish a regulated banking operation in Nigeria.
However, the payment does not guarantee approval, as the CBN has yet to make a final determination on the request.
Sources familiar with the process, speaking on the condition of anonymity due to the private nature of the matter, stated that the funds transfer represents one of the concluding regulatory hurdles for the licensing process.
Subject to the regulator’s judgment, they noted, the bank anticipates receiving clearance by the end of 2026 or early 2027.
The report read, “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.”
Significant expansion of the JPMorgan presence
The bank has long advised governments and corporate entities on Eurobond issuances and other financial deals, operating primarily through its representative office in Lagos. Establishing full merchant operations would substantially expand the institution’s presence in Nigeria.
With a merchant banking license, the lender would be empowered to broaden its financial services across the country, particularly within corporate banking, credit facilities, trade finance, and payment processing.
Under Nigerian banking regulations, applicants seeking a license are required to deposit funds into a designated CBN account as part of the approval process. This requirement serves to demonstrate that the institution possesses sufficient capital to sustain its proposed operations.
JPMorgan’s proposed expansion into Nigeria forms part of a broader strategy to scale its presence across the African continent. The New York-based financial institution is seeking to strengthen its market position in handling transactions for corporate entities, sovereign governments, and institutional investors throughout African markets.
Backstory…
Meanwhile, this comes just days after Dapo Olagunji, Managing Director of J.P Morgan West Africa, announced that operations are expected to commence before the end of 2026.
The move follows J.P Morgan’s decision on September 15 to grant Nigeria a 7.4 percent weighting in its new emerging markets index, the Government Bond Index–Emerging Markets Edge (GBI-EM Edge).
Read Also: J.P. Morgan Announces Plans To Launch Nigerian Merchant Bank Before End Of 2026
