JPMorgan targets banking license in Nigeria, deposits N50 billion to CBN

In a bid to expand its operations in Africa’s largest economy, JPMorgan Chase & Co is targeting to have a merchant banking license in Nigeria, and has reportedly deposited N50 billion with the Central Bank of Nigeria (CBN).

The amount, equivalent to about $38 million, is a key requirement in the application process and signals the lender’s readiness to set up licensed banking operations in Nigeria, Bloomberg reported on Tuesday.

However, the payment does not guarantee approval, as the CBN has not yet made a final decision on the application.

People familiar with the process, who asked not to be named because the matter is private, said the bond is one of the final regulatory requirements for the permit. They added that the bank expects to obtain approval in late 2026 or early 2027, depending on the regulator’s decision.

The report said, “JPMorgan Chase & Co. is depositing 50 billion naira ($38 million) into the Central Bank of Nigeria as it nears efforts to obtain a banking license in Africa’s most populous country, according to people familiar with the matter.

“The deposit, one of the final regulatory requirements for approval, signals the largest U.S. lender’s readiness to launch merchant banking operations in Nigeria if its application is approved, said the people, who asked not to be identified because the process is private.”

JPMorgan declined to comment on the development, while a CBN spokesperson did not immediately respond to a request for comment, according to Bloomberg.

The bank’s proposed entry would mark a significant expansion of the bank’s presence in Nigeria, where it has advised governments and companies on Eurobond issuance and other financial transactions for many years, largely through its representative office in Lagos.

The merchant banking license will allow the lender to expand its financial services in the country, particularly in corporate banking, lending, trade finance and payments.

Under Nigerian banking regulations, license applicants are required to place capital in a designated account with the CBN as part of the approval process. This requirement is intended to demonstrate that the applicant has sufficient funds to support its proposed operations.

The N50 billion deposit is therefore an important step in JPMorgan’s efforts to move beyond the existing representative office structure. However, final approval remains at the discretion of the apex bank.

JPMorgan’s proposed operations in Nigeria are also part of a broader expansion strategy across the continent. The New York-based lender is seeking a larger share of business involving companies, governments and investors operating in African markets.

The bank has also strengthened its investment banking leadership across Africa in recent months.

It appointed Edward Bell to lead investment banking in sub-Saharan Africa, while Sailepu Montet was named head of its Kenya office and Michael Ahonzo Avou was appointed to oversee operations in Ivory Coast.