JPMorgan advances Nigerian banking licence bid with N50bn CBN deposit

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) to advance its application for a merchant banking licence in Nigeria.

Citing people familiar with the matter, Bloomberg reported 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 said JPMorgan expects to secure the licence by the end of 2026 or early 2027, subject to regulatory approval.

Under Nigerian banking regulations, prospective banks are required to place capital in a designated account with the central bank as part of the licensing process.

The requirement is intended to demonstrate that applicants have sufficient funds to support their proposed operations.

The deposit is a significant step in JPMorgan’s efforts to expand its presence in Africa’s largest economy, where it is seeking to increase its exposure to trade finance, lending, payments and corporate banking.

The New York-based lender 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.

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.

Nigeria’s large economy and its role in regional trade make it an important market for international banks seeking to grow their African operations.