JP Morgan Targets Nigerian Banking Licence
American banking giant JP Morgan Chase & Co. is moving closer to securing a merchant banking licence in Nigeria after reportedly depositing 50 billion naira with the Central Bank of Nigeria.
A Bloomberg report published on Tuesday, citing people familiar with the matter, says the deposit represents part of the regulatory requirements the financial institution must meet before it can receive approval to establish a merchant banking subsidiary in the country.
The reported deposit is valued at approximately 38 million dollars.
According to the report, JP Morgan hopes to obtain the necessary permit by the end of 2026 or early 2027, subject to the completion of regulatory procedures and the required approvals.
Mediaplusng.com reports that the proposed expansion follows an earlier announcement by Dapo Olagunju, JP Morgan’s managing director for West Africa, who disclosed plans to establish a merchant banking subsidiary in Nigeria during the Nigeria-Asia Financial Connectivity Dialogue in Singapore.
The dialogue was convened through a collaboration involving the Central Bank of Nigeria, JP Morgan, Nigerian Exchange Group and FMDQ Group.
The planned subsidiary would mark a significant development in the bank’s Nigerian operations, potentially expanding its capacity to provide financial services to businesses and institutional clients.
JP Morgan currently operates a representative office in Lagos. Obtaining a merchant banking licence would allow the institution to broaden its activities in Nigeria, subject to the terms of its approval.
The expansion is also part of the bank’s wider strategy to strengthen its presence across Africa and increase its participation in payments, lending, trade finance and corporate banking.
For Nigerian businesses, a deeper presence by an international financial institution could create additional opportunities to access global financial networks, international trade services and specialised banking products.
However, the actual benefits would depend on the services offered, the clients served and the bank’s eventual operating arrangements.
JP Morgan’s relationship with Nigeria dates back to 1961, when Chase Manhattan Bank, its predecessor, established a presence in Lagos and provided commercial banking services to local businesses and individuals.
The institution also has historical links to Nigeria’s industrial development. In 1960, Chase International Investment Corporation, a unit of Chase Manhattan Bank, served as lead partner in organising Nigerian Textile Mills in Lagos, an early major private industrial project involving American interests.
The reported licence application therefore represents a potential new phase in the bank’s longstanding relationship with the Nigerian economy.
For the CBN, the approval process forms part of its regulatory oversight of financial institutions seeking to operate in the country.
While the reported 50-billion-naira deposit is an important step in the application process, it does not automatically guarantee that a licence will be granted.
The bank must still satisfy the applicable regulatory requirements before commencing any newly authorised merchant banking operations.
The development will be closely watched by Nigeria’s financial sector as international banks assess opportunities in Africa’s largest economy and businesses seek stronger connections to global markets.
