The United States’ largest bank, JPMorgan Chase, has secured approval-in-principle from the Central Bank of Nigeria to establish a merchant bank in Nigeria, marking a significant step towards expanding its operations in Africa’s largest economy.
The development follows the bank’s reported deposit of 38 million dollars, equivalent to approximately 50 billion naira, with the Central Bank of Nigeria to meet the minimum capital requirement for a nationally authorised merchant bank.
Mediaplusng.com reports that the proposed institution, JPMorgan Merchant Bank Nigeria Limited, will be led by Adedapo Olagunju, the bank’s managing director for West Africa.
The approval represents a major development in JPMorgan’s long-standing presence in Nigeria, where it currently operates through a representative office in Lagos, serving corporate and institutional clients.
With a merchant banking licence, the American financial giant could expand its services to include corporate finance, trade finance, foreign-currency lending, capital raising and other specialised financial services for major Nigerian businesses.
The move is also expected to strengthen the connection between Nigerian companies and international financial markets, potentially creating additional opportunities for businesses seeking foreign investment and access to global funding.
According to the Central Bank of Nigeria, the approval is consistent with ongoing financial sector reforms aimed at strengthening financial stability and deepening Nigeria’s integration into international capital markets.
However, the regulator has emphasised that approval-in-principle does not authorise the proposed institution to commence operations.
JPMorgan Merchant Bank Nigeria Limited must still complete its registration with the Corporate Affairs Commission, establish the necessary operational systems and satisfy outstanding regulatory requirements before the CBN can issue a final merchant banking licence.
The bank’s expansion plans were announced earlier in October during the Nigeria–Asia Financial Connectivity Dialogue in Singapore, where Nigerian financial institutions and international stakeholders explored ways to improve cross-border financial connections.
At the event, Olagunju said the proposed institution would deepen JPMorgan’s relationship with Nigerian businesses and the country’s capital markets.
JPMorgan, which manages approximately five trillion dollars in assets, is seeking to strengthen its position in corporate lending, payments, trade finance and investment banking across Africa.
Its proposed entry into Nigeria’s merchant banking market could intensify competition with established local institutions and the corporate banking divisions of major commercial banks.
For Nigerian businesses, particularly those in energy, telecommunications, infrastructure, manufacturing and financial services, the development could potentially broaden access to international financing, including dollar-denominated loans and capital-raising opportunities.
JPMorgan has previously participated in major Nigerian financing transactions, including the federal government’s 2.2-billion-dollar Eurobond issuance in 2024.
Although the final licence is still outstanding, the approval-in-principle signals progress towards establishing a locally regulated merchant banking operation.
The key question now is how quickly the bank can fulfil the remaining requirements and begin operations, potentially bringing more international financial expertise and competition into Nigeria’s banking sector.
