JPMorgan deposits N50bn with CBN to advance Nigeria’s banking licence bid
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) as it advances its application for a merchant banking licence in Nigeria.
According to Bloomberg, which cited people familiar with the matter, 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, who requested anonymity because the licensing process is private, said JPMorgan expects to secure the licence by the end of 2026 or early 2027, subject to regulatory approval.
However, there is no guarantee that the application will be successful, as the CBN retains the final decision on whether to grant the licence.
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 development marks 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 currently 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.
The bank 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 appointed Sailepu Montet to head its Kenya office and Michael Ahonzo Avou to oversee operations in Ivory Coast.
These appointments reflect the lender’s efforts to expand its regional coverage and strengthen relationships with businesses, governments and institutional clients.
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.
